Insolvency tribunal NCLT has issued notice to Think & Learn Pvt Ltd, which provides online educational services under the brand name of Byju's, over a petition filed by the Board of Control for Cricket in India (BCCI).
The BCCI has filed a petition claiming dues of Rs 158 crore as an operational creditor under section 9 of the Insolvency & Bankruptcy Code 2016.
Admitting BCCI's plea, a two-member Bengaluru-based bench of the National Company Law Tribunal (NCLT) issued notice to Think & Learn on November 28, 2023.
The NCLT order further said, "Two weeks is granted to the Respondent (Byju's) to file a reply and one week thereafter is granted to the Applicant (BCCI) to file rejoinder, if any, after duly serving the copy on the other side." The tribunal has directed to list the matter on December 22, 2023, for the next hearing in this matter.
During the proceedings, BCCI's counsel informed NCLT that a general notice was issued to Byju's through an e-mail dated January 6, 2023, with a default amount of Rs 158 crore, excluding TDS.
Byju's first came on board back in 2019 when mobile manufacturer Oppo transferred the sponsorship rights to the online tutorial firm.
The edtech major Byju’s is in the process of raising Rs 600-700 crore to fund the company's operations till March by when it expects to realise money through the sale of Epic and partial stake sale in other subsidiaries, according to sources aware of the development as per a Newsdrum.in report.
Byju’s founder Byju Raveendran has recently raised money by mortgaging home and real estate assets owned by family members for paying salaries, sources said.
"There is about Rs 50 crore gap per month in operational expenses where a large component is salary. Promoters have pledged shares, homes, and some other real estate assets of family members to bridge the gap," the source said.
"Promoters are also in the process of raising debt of Rs 600-700 crore to help operations till March. By March, the situation will ease with the sale of Epic and partial stake sale in some other subsidiaries," a source said.
Another source said Byju’s has called an Annual General Meeting (AGM) on December 20 where the assets that have been pledged by the promoters will be brought to the notice of the company's board.
Last month, Manipal Education and Medical Group Chairman Ranjan Pai acquired a Rs 1,400 crore debt raised by edtech major Byju's from Davidson Kempner.
The settlement includes a penal amount claimed by Kempner against debt investment of USD 100 million, or about Rs 800 crore.
Pai is also in discussions to buy additional stakes in AESL shortly. Ranjan Pai's proprietary fund, Aarin Capital, was the first institutional investor in Byju’s in 2013.