Byju's future hangs in balance as Karnataka HC readies to hear investor revolt case on March 13
Prosus NV, General Atlantic, Sofina, and Peak XV Partners, who have filed a case before the National Company Law Tribunal (NCLT) against Byju's $200 million rights issue. These investors allege that the issue suppresses their rights and accuse the company of mismanagement.
Apart from the investor disputes, Byju's is also facing legal battles with its lenders and vendors. The company had raised $1.2 billion through a term loan B in 2021 but has struggled to repay it due to rising interest rates and failure to meet covenants.
Lenders have taken Byju's to court in the US and have also filed an insolvency petition against the company in the Bengaluru NCLT bench. Vendors, including the French multinational Teleperformance SE's Indian unit and the Board of Control for Cricket in India (BCCI), have filed separate insolvency petitions against Byju's to recover unpaid dues.
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