US lender to BYJU'S parent moves SC over removal from lenders' panel
This story was originally published at 19:16 IST on 17 September 2024
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NEW DELHI – US-based GLAS Trust Co LLC today moved the Supreme Court over its removal from the committee-of-creditors to the debt-ridden Think & Learn Pvt Ltd, the parent company of BYJU'S. The US lender also sought the removal of the interim resolution professional of Think & Learn.
Advocate Kapil Sibal, appearing for GLAS Trust, said that the party was a financial creditor and has over 19% vote share. However, the interim resolution professional disqualified it. Sibal said that the resolution officer removed the US lender as some documents had not been provided. The apex court will hear the case on Wednesday.
On Sep 3, 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 Bengaluru bench of the National Company Law Tribunal for direction seeking no further meeting of the committee-of-creditors.
However, the tribunal on Sep 4 refused to stay the meetings of the committee-of-creditors and kept the US lender's plea pending. It had asked GLAS Trust to make Think & Learn's operational creditor, the Board of Control for Cricket in India, a party in its applications. Challenging the tribunal's order, the US lender has moved the apex court.
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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