बायजू के अमेरिकी दिवालियापन के फैसले ने भारतीय अधिकारी को चौंका दिया।

Byju’s US bankruptcy ruling catches Indian official off guard.

A US court ruling that placed bankruptcy proceedings on units of the Indian education technology firm Byju’s has caught an official from the company’s home country off guard. The decision, handed down during a Tuesday hearing in Delaware, mandates the involuntary Chapter 11 bankruptcy of several units, including Neuron Fuel Inc., Epic! Creations Inc., and Tangible Play Inc., according to court documents. This order was issued as a default judgment after these units failed to provide the requested information to creditors. Pankaj Srivastava, Byju’s Interim Resolution Professional appointed earlier this year, expressed surprise and noted that the ruling conflicts with ongoing insolvency proceedings in India. He has requested a stay on the bankruptcy ruling.

The petition, filed by creditors led by HPS Investment Partners in June, accuses Byju Raveendran, the company’s founder, of breaching debt agreements by withholding financial details about the three units. Judge Brendan Shannon also approved the creditors' request for an independent Chapter 11 trustee to oversee the bankrupt Byju units. Once valued at $22 billion and a symbol of India’s tech aspirations, Byju’s is currently facing over a half dozen bankruptcy cases both in India and internationally. The company's business, which initially surged during the Covid-19 pandemic, has struggled with liquidity issues as classrooms reopened. Creditors in both the US and India are seeking repayments. Epic and the other Byju units are fighting the forced bankruptcy, arguing in a September court filing that the creditors lack the legal standing to initiate the proceedings and are using it as a tactical maneuver to gain an advantage in related litigation.

Srivastava, citing Indian insolvency law, emphasized the Resolution Professional’s responsibility to manage the corporate debtor’s assets. He did not attend the hearing, as indicated in court documents. There has been ongoing contention between the Indian official and US creditors over the complex cross-border bankruptcy process, including the removal of US lenders from an influential creditors committee in India—a decision made by Srivastava.

It remains uncertain whether the Indian official’s request will alter the ruling. The Byju’s petitioning creditors have expressed disagreement with Srivastava’s letter, requesting the judge to finalize the bankruptcy order. As of Friday afternoon, there has been no public indication that the judge has signed the order.

News Reference