A recent report indicates that international lenders to Byju’s have initiated insolvency proceedings against the ed-tech company. Byju’s is grappling with a deepening financial crisis as foreign investors file for insolvency before the National Company Law Tribunal (NCLT), according to Moneycontrol.
Responding to the developments, Byju’s dismissed the proceedings before the NCLT as “baseless and premature,” emphasizing that the validity of lenders’ actions is under challenge in various proceedings, including before the New York Supreme Court. Byju’s previously reached an agreement with the lenders in July 2023 to amend the loan terms, involving aspects such as pricing and tenure.
The foreign lenders, who collectively extended over 85 percent of Byju’s $1.2 billion term loan, have reportedly hired a leading law firm to pursue bankruptcy claims, with notices already issued to Byju’s. The dispute revolves around the utilization of funds by the edtech company, which secured the substantial term loan in November 2021. Founder Byju Raveendran’s company, once valued at $22 billion, has encountered missed payments, escalating tensions with lenders and raising concerns about the company’s financial stability.
