A court allowed insolvency proceedings to begin against online tutor Byju’s and installed an interim resolution professional to replace the firm\u2019s once-storied founder. <\/p>\n
The country\u2019s powerful cricket governing body initiated the process \u2014 Byju\u2019s used to sponsor the national team \u2014 and the court order invited other financial creditors, employees of the firm and vendors to file claims. <\/p>\n
The \u201cexistence of a debt and a default in the payment of debt is clearly established\u201d, the National Company Law Tribunal (NCLT) said Tuesday, adding it found no reason to deny the petition filed by the Board of Control for Cricket in India (BCCI). <\/p>\n
\u201cThis effectively means that founders and existing Board of Directors lose control of Byju\u2019s,\u201d said Satwinder Singh, managing partner at Aekom Legal. <\/p>\n
\u201cThe resolution professional will now be responsible for carrying out the operations of the company and keep it as a going concern until the insolvency process is complete.\u201d <\/p>\n
Byju\u2019s, founded by teacher Byju Raveendran, was valued at $22 billion at its peak but ran into financial and legal problems after its business dried up. <\/p>\n
The plea brought by the cricket board is one of several bankruptcy cases Byju\u2019s is fighting in India and abroad. <\/p>\n
\u201cWe wish to reach an amicable settlement with BCCI, and we are confident that, despite this order, a settlement can be reached,\u201d a spokesperson for Byju\u2019s said in a statement. <\/p>\n
\u201cIn the meantime, our lawyers are reviewing the order and will take necessary steps to protect the company\u2019s interests.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
A court allowed insolvency proceedings to begin against online tutor Byju’s and installed an interim resolution professional to replace the firm\u2019s once-storied founder. The country\u2019s powerful cricket governing body initiated the process \u2014 Byju\u2019s used to sponsor the national team \u2014 and the court order invited other financial creditors, employees of the firm and vendors to file claims. The \u201cexistence of a debt and a default in the payment of debt is clearly established\u201d, the National Company Law Tribunal (NCLT) said Tuesday, adding it found no reason to deny the petition filed by the Board of Control for Cricket in […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-833591","post","type-post","status-publish","format-standard","hentry","category-it-2"],"acf":[],"_links":{"self":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/833591","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/comments?post=833591"}],"version-history":[{"count":0,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/833591\/revisions"}],"wp:attachment":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/media?parent=833591"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/categories?post=833591"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/tags?post=833591"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}