Byju's Lenders and IRP Dispute Continues
The legal battle between Byju's lenders and the Insolvency Resolution Professional (IRP) continues, with the National Company Law Tribunal (NCLT) in Bengaluru deferring the matter to September 11th. This decision comes after Glas Trust Co, representing a group of US lenders, challenged its removal from the Committee of Creditors (CoC) and sought the removal of IRP Pankaj Srivastava.
The NCLT acknowledged the Supreme Court's approval for the CoC's formation and meeting, stating that the process cannot be halted. However, the bench allowed lenders to file separate applications for further actions.
The dispute stems from IRP Srivastava's removal of Glas Trust from the CoC, claiming they did not represent the minimum 51% of lenders in the consortium that provided a $1.2 billion loan to Byju's. Glas Trust contested this removal and also challenged Srivastava's appointment as the permanent resolution professional.
Adding to the complexity, the Supreme Court is also hearing an appeal by Glas Trust opposing a Rs 158-crore settlement between Byju's and the BCCI. Glas Trust alleges that the money paid by Byju Raveendran's brother, Riju Ravindran, was tainted.
With the NCLT deferring the matter and the Supreme Court hearing ongoing, the future of Byju's debt resolution remains uncertain. The next hearing on September 11th will be crucial in determining the next steps in this ongoing legal battle.