SUMMARY
The company filed a corporate insolvency resolution under Section 9 of the Insolvency and Bankruptcy Code, 2016
BYJU’S has been given two weeks to respond to the matter
The case is due for a subsequent hearing on May 28
The Bengaluru bench of the National Company Law Tribunal (NCLT) has admitted an insolvency plea against embattled edtech major BYJU’S by Chinese electronics manufacturer OPPO Mobiles Pvt Ltd.
However, OPPO has not disclosed the amount BYJU’S owes.
The Section 9 plea seeks to initiate a corporate insolvency resolution process against BYJU’S under the Insolvency and Bankruptcy Code (IBC), 2016.
OPPO has declined to comment on Inc42’s queries pertaining to the matter.
Meanwhile, sources inside BYJU’s confirmed Inc42 that the tribunal has admitted the case without further divulging much information.
BYJU’S has been given two weeks to respond to the matter, with the NCLT scheduled to hear the case next on May 28, Mint reported.
With this, the list of entities seeking their dues from BYJU’S rose yet again. Other prominent names whose insolvency pleas against the company are its $1.2 Bn Term Loan B (TLB) lenders, the Board of Control for Cricket in India (BCCI), outsourcing firm Teleperformance Business Services, and IT service provider Surfer Technology.
However, the list of entities seeking their due compensation from the company isn’t just restricted to India. In the US, the company is facing a case filed by lender Glas Trust alleging over-defaulting on a loan raised from the US-based creditors.
Apart from this web of troubles, the company, which was once valued $220 Bn, is also fighting fires on multiple ends. Prominently, it is engaged in a long drawn feud with a group of four of its investors over its recent $200 Mn fundraise via rights issue, alleged oppression and mismanagement within the company, among others.
Internally, the company also embarked on a layoff exercise. Last month, it fired 500 employees. Meanwhile, 5,000 people who are still employed with BYJU’S are regularly seeing delays in their monthly remunerations.
While being caught up in a whirlwind of troubles, the company’s CEO and founder Byju Raveendran is looking to pivot the company into a new phase of growth, which he terms BYJU’S 3.0. Under this, BYJU’S plans to lean out its structure, reduce expenses and consolidate some of the verticals.
