India’s Byju’s said on Thursday that a U.S. court has shunned its lenders’ attempts to block its settlement with the Indian cricket board, calling it a “win” for its “turnaround efforts” in the country where it was once valued at $22 billion.
The education technology company recently settled a $19 million payment dispute case with the Board of Control for Cricket in India (BCCI).
Following this, an Indian tribunal ordered a halt on insolvency proceedings against Byju’s.
However, the U.S.-based Glas Trust, representing some lenders to a Byju’s group company, opposed the halt, saying founder Byju Raveendran and his brother used money owed to the lenders to clear BCCI dues.
Judge Brendan Shannon of Delaware Bankruptcy Court has rejected Glas Trust’s application for a temporary restraining order aimed at blocking the BCCI settlement, Byju’s said in a statement.
It was not immediately clear when the Glas Trust applied for the restraining order. The Trust did not immediately respond to Reuters’ request for a comment.
The founder’s brother, who cleared the dues, said the payments were done from “personal funds” and liquidation of personal assets.
“The court’s decision affirmed that it has no jurisdiction over the BCCI to halt the settlement and recognized that granting Glas’ requested relief would be an extraordinary and unjustified measure,” the embattled startup said on Thursday.
Byju’s has suffered setbacks in the last few years, including boardroom exits, an auditor resignation, and a public spat with foreign investors over alleged mismanagement. The company, currently valued at less than $3 billion, has denied any wrongdoing.
Reuters
