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Byju’s bankruptcy ruling in US catches Indian official off guard

Economic Times

Economic Times · 10m ago

Byju’s bankruptcy ruling in US catches Indian official off guard

Indian education technology company Byju's is facing involuntary Chapter 11 bankruptcy for its units, including Neuron Fuel, Epic! Creations, and Tangible Play, following a US court ruling. The decision came after the units failed to share requested financial information with creditors. Byju's is embroiled in several bankruptcy cases in India and abroad and has faced a liquidity crunch after classroom operations resumed amid the pandemic. Byju's interim resolution professional has requested a stay on the bankruptcy, while lenders have filed a petition accusing the company's founder of violating debt contracts.

Related News

NCLAT Likely To Rule On BYJU’S-BCCI Roe On Aug 2

Inc42 · 1y ago

NCLAT Likely To Rule On BYJU’S-BCCI Roe On Aug 2

Yesterday, the NCLAT put off its decision on approving the INR 158 Cr settlement between BYJU'S and the BCCI. Meanwhile, a US Bankruptcy Court has ordered Riju Ravindran, brother of Raveendran (BYJU'S founder), to pay $10,000 a day until he assists in locating $533 Mn that his company allegedly hid from US lenders. The dispute is centered around BYJU'S $1.2 Bn Term B Loan from US-based lenders.

BYJU’S Alpha sues Byju Raveendran, Divya Gokulnath over alleged ‘fraudulent transfer’ of $533M

YourStory

YourStory · 4m ago

BYJU’S Alpha sues Byju Raveendran, Divya Gokulnath over alleged ‘fraudulent transfer’ of $533M

BYJU’S Alpha has sued BYJU'S founder, co-founder, and an advisor, accusing them of orchestrating a fraudulent scheme to misappropriate $533 million in loan proceeds. Filed in the US Bankruptcy Court, the lawsuit aims to hold them accountable for breaching fiduciary duties and misleading creditors. Following a prior court ruling against related entities, the lawsuit seeks damages for breaches, conversion, and civil conspiracy, while demanding an accounting of the transferred funds.

Byju’s faces new probe over financial, accounting practices

Economic Times

Economic Times · 8m ago

Byju’s faces new probe over financial, accounting practices

India has initiated an investigation into Byju's, an online tutoring firm, over concerns of financial reporting misconduct and possible fund diversion. The Registrar of Companies in Hyderabad has been directed to scrutinize Byju's financial statements and determine if there were any misrepresentations or fraudulent activities. Byju's, which is battling legal challenges in both India and the US, recently lost a court ruling that revoked its ability to settle debts through bankruptcy, pushing the company further into insolvency proceedings. Byju's is currently being managed by an insolvency resolution professional.

SC Questions NCLAT’s Decision To Approve BYJU’S-BCCI Settlement

Inc42 · 10m ago

SC Questions NCLAT’s Decision To Approve BYJU’S-BCCI Settlement

The Chief Justice of India, DY Chandrachud, has revealed that the Supreme Court is contemplating returning the insolvency matter to the National Company Law Appellate Tribunal (NCLAT). This comes after the NCLAT's decision to pass an order based on the significant difference in the dues owed by BYJU'S to its Term Loan B lenders, Glas Trust, in comparison to the Board of Control for Cricket in India (BCCI). The decision follows a recent ruling by a US bankruptcy court, stating that BYJU'S had defaulted on its Term Loan B.

US lenders’ consortium files lawsuit against Byju’s founder, others

Economic Times

Economic Times · 4m ago

US lenders’ consortium files lawsuit against Byju’s founder, others

A consortium of U.S. lenders has filed a lawsuit against Byju’s founder, Byju Raveendran, his wife Divya Gokulnath, and adviser Anita Kishore, for allegedly misappropriating $533 million from a $1.2 billion loan. The lawsuit follows a Delaware Bankruptcy Court ruling confirming fraudulent activities. The lenders seek damages for breach of fiduciary duties and other claims, and are also pursuing legal action in India. Byju's has not commented on the lawsuit.

WeWork’s insolvency is a warning to Indian startups like Byju’s

Money Control

Money Control · 1y ago

WeWork’s insolvency is a warning to Indian startups like Byju’s

The troubles faced by WeWork and Byju's, two prominent startups in the US and India respectively. WeWork's issues came to light when it filed for an IPO in 2019, while Byju's is facing consequences for its past actions. The article highlights the similarities between the two companies' downfall, with WeWork heading towards bankruptcy and Byju's being warned of potential risks. This serves as a cautionary tale for Indian startups like Byju's.

BYJU’S’ US bets Epic, Tynker sold for pennies on the dollar

YourStory

YourStory · 1m ago

BYJU’S’ US bets Epic, Tynker sold for pennies on the dollar

BYJU’S, once a prominent Indian edtech company, faces ongoing difficulties as it battles insolvency. The company sold two US subsidiaries, Epic! and Tynker, at significant losses to recoup funds, after acquiring them for $500 million and $200 million, respectively, in 2021. The sales were finalized through a Delaware bankruptcy court auction. These sales highlight BYJU’S financial issues, including a $1.2 billion loan default and accusations of fraudulent financial activities.

BYJU’s Bankruptcy Case: US Court Pushes To Retrieve ‘Missing’ $533 Mn

Inc42 · 1y ago

BYJU’s Bankruptcy Case: US Court Pushes To Retrieve ‘Missing’ $533 Mn

US Bankruptcy Judge in Wilmington, Delaware, has lifted the arrest warrant for William C. Morton, founder of Camshaft Fund, after he transferred $533 million of loan proceeds from BYJU's to a UK lender and then to an unnamed non-US entity linked to BYJU's.

Byju’s RP’s suit claims directors owe compensation to company under IBC laws

Economic Times

Economic Times · 1m ago

Byju’s RP’s suit claims directors owe compensation to company under IBC laws

An EY-backed resolution professional has filed lawsuits at the NCLT against former Byju’s directors, claiming they owe compensation for fraudulent asset transfers. The lawsuits argue that transactions were reversed under the Insolvency and Bankruptcy Code, citing a $533 million investment and Rs 130 crore unjustly moved. Former directors Byju Raveendran, Riju Ravindran, and Divya Gokulnath are implicated. The lawsuits follow a Delaware court ruling questioning a $533 million transfer by Byju’s Alpha, a subsidiary, which was deemed illegal.

BYJU’S Insolvency: DGGI Looking To Recover INR 250 Cr GST

Inc42 · 8m ago

BYJU’S Insolvency: DGGI Looking To Recover INR 250 Cr GST

The DGGI is looking to collect INR 230 Cr to INR 250 Cr in unpaid taxes related to certain supplies made by the US-based subsidiaries of an edtech startup to Indian recipients. These transactions were allegedly not recorded, enabling the company to evade GST payments. Recently, the Supreme Court overturned a National Company Law Appellate Tribunal (NCLAT) ruling that permitted a settlement between the edtech startup and the Board of Control for Cricket in India (BCCI) regarding an insolvency petition.

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