BENGALURU: The Board of Control for Cricket in India (BCCI) has now arrived at a settlement with edtech major Byju’s over Rs 158 crore debt. The BCCI has informed the National Company Law Appellate Tribunal about the settlement and the Chennai bench will hear the case again on August 1.
Byju Raveendran’s brother Riju Raveendran has paid Rs 50 crore on Wednesday and about Rs 25 crore will be paid on August 2 and the remaining amount by next week. However, the NCLAT Chennai bench has not passed an order yet. In 2019, Byju’s had entered a three-year jersey sponsorship agreement with BCCI and in 2022, it sought termination of agreement as the company was facing severe cash crunch. A year later, BCCI started insolvency proceedings against the edtech company for defaulting dues.
Meanwhile, the edtech firm’s US lenders have opposed the settlement. As per reports, a senior advocate representing the US lenders questioned the source of the money. The US lenders claimed USD 533 million has been unlawfully diverted. In March this year, a US Bankruptcy Court prohibited transfer or use of USD 533 million. Both Byju’s and USD 1.2 billion Term Loan B (TLB) lenders are fighting a legal battle in US courts.
As per the lenders, USD 533 million is rightfully and contractually owed to lenders. Byju’s had taken a loan from certain US-based lenders in November 2021 and for that purpose an SPV named Byju’s Alpha was incorporated in Delaware.
Riju Raveendran paid Rs 50 crore, Rs 25 crore to pay on Aug 2
Byju Raveendran’s brother Riju Raveendran has paid Rs 50 crore on Wednesday and about Rs 25 crore will be paid on August 2 and the remaining by next week. The NCLAT Chennai bench has not passed an order yet. In 2019, Byju’s had entered a 3-year jersey sponsorship pact with BCCI and in 2022, it sought termination of agreement. A year later, BCCI started insolvency proceedings against Byju’s.