In accordance with Section 9 of the Insolvency and Bankruptcy Code, 2016, the business filed a corporate insolvency resolution. BYJU’S was given two weeks to respond to the situation. The case is set for a subsequent hearing on May 28.
The Bengaluru bench of the National Company Law Tribunal (NCLT) has found a petition to the insolvency proceedings of BYJU’S by Opdivo Mobiles Pvt. Ltd, a Chinese electronics company, admissible.
Still the OPPO’s company, nevertheless, has not disclosed the exact amount of money that BYJU’s owes.
The petition from Section 9 demands a process of resolution of the corporate bankruptcy be set in motion based on rationalization of the bankruptcy and Bankruptcy code of the year 2016 (IBC).
On the other hand, those at BYJU stated in their conversation with Inc42 that the tribunal has brought admittance to the case without revealing more to it.
The committee has given BYJU’S time till 28th May to reply to the order, and the court will hear the case on this day.
This also led to a rise in demand for payments from BYJU’S by these companies. At least a $1.2 billion Term Loan B (TLB) lender and the Board of Control for Cricket in India (BCCI) are the crucial entities who have filed the insolvency petition against the company, moreover, Teleperformance Business Services an outsourcing company and Surfer Technology an IT service provider are also affecting the company.
Nonetheless, the litigants are not restricted to only India as the companies have incorporated their businesses around globe. In the USA the corporation is facing a lawsuit launched by debtors’ Glas Trust, claiming over defaults on a loan the funds of which were provided by U.S. lenders.
The company, had a business valuation of $220 billion until yesterday, is fending off many threats on diverse fronts, in addition to the one it has gotten caught up in. Furthermore, according to some reports, they are involved in a dispute with a bunch of their four shareholders concerning the issue of the company’s 200 million rights issue and the charges of despotism and mismanagement in the company itself.
Besides that the corporation, also, decided to run down its operations internally. In past month, it had sacked 500 employees. On the one hand, the 5000 employees still in the business at BYJU’S have to live with salary delays every month.
While caught up in a tornado of problems, the business’s CEO and founder, Byju Raveendran, is trying to pivot the company into a new era of growth, which he refers to as BYJU 3.0. BYJU’S intends to lean out its structure, cut costs, and consolidate several verticals as part of this strategy.
