NCLT refuses to stay BYJU'S parent co lenders meet on US lender plea
This story was originally published at 14:48 IST on 4 September 2024
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NEW DELHI – The Bengaluru bench of the National Company Law Tribunal today refused to stay meetings of the committee-of-creditors of debt-ridden Think & Learn Pvt Ltd, the parent of online educational services company BYJU'S, after its US lender GLAS Trust Co LLC said that it was removed from the lender's panel. The tribunal will hear the case next on Sep 11.
On Tuesday, the interim resolution professional of Think & Learn removed GLAS Trust after noting that it does not represent the minimum 51% of lenders in the consortium that provided a $1.2 bln term loan to the company. Challenging this, GLAS Trust moved the tribunal and sought direction seeking no further meeting of the committee-of-creditors. GLAS Trust also sought removal of the interim resolution professional of Think & Learn.
The tribunal today asked GLAS Trust to file applications seeking removal of the interim resolution professional and regarding its removal from the lender's panel. It also asked GLAS Trust to make Think & Learn's operational creditor, the Board of Control for Cricket in India, a party in their applications.
On Aug 2, the National Company Law Appellate Tribunal had set aside an order passed by the Bengaluru bench of the tribunal in July to start insolvency proceedings against Think & Learn. The appellate tribunal passed the order after it was informed that Think & Learn and the cricketing board had arrived at a settlement. However, GLAS Trust contested the payment by the debt-ridden company and moved the apex court.
On Aug 14, the apex court had stayed the National Company Law Appellate Tribunal's order approving a settlement between Think & Learn and the cricket board, and issued notices to Think & Learn, co-founder Byju Raveendran, and the board on a petition from GLAS Trust opposing the settlement. On Aug 22, the Supreme Court had refused to stay meetings of the committee-of-creditors of Think & Learn and said it would first hear the case on merits. End
Reported by Surya Tripathi
Edited by Aditya Sakorkar
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