India‘s top court on Wednesday revived insolvency proceedings against Byju’s by putting a previous tribunal order on hold, in a victory for U.S. lenders that say they are owed $1 billion by the education technology company.
The Supreme Court order is a setback to company founder Byju Raveendran who earlier this month regained control of the startup that was once India‘s most valuable at $22 billion.
Byju’s did not immediately respond to a request to comment on the court order.
The company was undergoing insolvency proceedings following a complaint by India‘s cricket control body which said it was not paid sponsorship dues. The two sides subsequently settled the dispute and an appeals tribunal halted the insolvency proceedings.
A revival of the proceedings will put control of the company back in the hands of a court-appointed insolvency administrator.
The Supreme Court on Wednesday agreed to hear an appeal by U.S.-based Glas Trust, which represents some lenders of a Byju’s group company, putting on hold the earlier order that had quashed insolvency proceedings against Byju’s.
Reuters
