Byju’s is reportedly seeking an out-of-court settlement with the Board of Control for Cricket in India (BCCI) over an ongoing insolvency dispute.
What Happened: As reported by Moneycontrol, Byju’s, which was admitted to insolvency proceedings on July 16 by the National Company Law Tribunal (NCLT), is keen on resolving the matter with BCCI outside the court. The NCLT’s decision was in response to a plea filed by the BCCI against Think and Learn Pvt Ltd, the parent company of Byju’s.
The edtech giant will have to secure a stay on the insolvency resolution process from the National Company Law Appellate Tribunal (NCLAT) before it can consider settlement options. However, if BCCI opposes the stay, NCLAT may hesitate as Byju’s has admitted its debt.
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A spokesperson for Byju’s stated, “As we have always maintained, we wish to reach an amicable settlement with BCCI and we are confident that, despite this order, a settlement can be reached. In the meantime, our lawyers are reviewing the order and will take necessary steps to protect the company's interests.”
The NCLT has appointed Pankaj Srivastava as the interim resolution professional (IRP), who will oversee the company’s operations until a Committee of Creditors (CoC) is formed. As per the Insolvency and Bankruptcy Code (IBC), Byju's will lose control of the company, which will now be under the control of its creditors.
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