Amid insolvency proceedings, BYJU'S seeks out-of-court settlement with BCCI
Edtech giant BYJU'S, recently admitted to insolvency proceedings, is reportedly planning an out-of-court settlement with the Board of Control for Cricket in India (BCCI), as per Moneycontrol. The National Company Law Tribunal (NCLT) initiated the insolvency resolution process for BYJU'S parent company, Think and Learn Pvt Ltd, earlier today. This action followed a plea filed by the BCCI over alleged unpaid dues of ₹158 crore.
Legal hurdles in BYJU'S path to settlement with BCCI
To proceed with the settlement, BYJU'S must first secure a stay of the insolvency resolution process from the National Company Law Appellate Tribunal (NCLAT). However, this could prove challenging if BCCI opposes the stay. The NCLAT may be hesitant to grant it as BYJU'S has already admitted its debt. This means that BYJU'S needs BCCI's cooperation to halt the tribunal's order before they can move forward with a settlement.
BYJU'S expresses confidence in reaching settlement with BCCI
In response to the ongoing legal proceedings, a spokesperson from BYJU'S stated, "As we have always maintained, we wish to reach an amicable settlement with BCCI and we are confident that, despite this order, a settlement can be reached." The company's lawyers are reviewing the NCLT order and will take necessary steps to protect the company's interests.
NCLT appoints Interim Resolution Professional for BYJU'S
The NCLT has appointed Pankaj Srivastava as the interim resolution professional (IRP) to oversee BYJU'S operations until a Committee of Creditors (CoC) is formed. Under the Insolvency and Bankruptcy Code (IBC), control of BYJU'S now rests with its creditors. During this Corporate Insolvency Resolution Process (CIRP), all debts and interest on debts will be frozen, and no assets of BYJU'S can be transferred.
