U.S. Court Says It Won't Stop Byju's Debt Payment To BCCI, Dismisses Insolvency Case

A U.S. court has dismissed an insolvency case against Indian edtech behemoth Byju’s, refusing to stop the company from making a payment to the Board of Control for Cricket in India (BCCI) despite efforts by the firm’s U.S. lenders.

What Happened: U.S. Bankruptcy Judge Brendan Shannon rejected a lender’s plea to stop Riju Ravindran, the brother of Byju’s founder, from making a payment of over $19 million (₹159.50 crore) to BCCI, reported Bloomberg. This payment agreement played a crucial role in the dismissal of an insolvency case against Byju’s in India.

Judge Shannon said he wasn’t comfortable in interfering with legal proceedings in another country, alluding to the ongoing legal tussles between Byju’s and its lenders in India.

GLAS Trust Company, a trustee for lenders owed $1.2 billion (around ₹10,074 crore) had argued that any funds used by Ravindran to settle Byju’s outstanding dues should be redirected towards them.

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The lenders had aimed to convince Judge Shannon to overrule an Indian court, which had already spent several days deliberating over the payment dispute. Sheron Korpus, a lawyer representing Ravindran, contended that acceding to the lenders’ request would amount to a gross affront to the Indian judicial system.

The lenders are close to obtaining a judgment in a U.S. court against Ravindran, who is alleged to have hidden $533 million (around ₹ 4,474 crore) while serving as a director of a Byju’s subsidiary registered in Delaware.

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