Byju’s US lenders invokes parent company's guarantee in insolvency proceedings

economictimes.indiatimes.com:

National Company Law Tribunal (NCLT) on Wednesday told Byju’s to respond to two separate insolvency petitions filed against the troubled edtech firm by US lenders and the Board of Control for Cricket in India (BCCI).

In the first matter, the Bengaluru bench of NCLT provided Byju’s parent Think & Learn three weeks from now to file its objections to a petition filed by Glas Trust Company LLC, the administrative agent appointed by a group of lenders that had extended a $1.2-billion term loan B to its US subsidiary Alpha Inc to collect the debt under the guarantee agreement.

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It asked Glas Trust to issue a notice to the embattled edtech firm for payment defaults of the loan that it had guaranteed along with a copy of the petition it filed in the bankruptcy court.

The petitioner – that claims to collectively own more than 85% of the term loan B – invoked the guarantee provided by Think & Learn.

In a separate case, BCCI’s counsel on Wednesday told the Bengaluru bench of NCLT that Byju’s has not yet paid pending due of Rs 156 crore.

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The counsel claimed that Byju’s had already deducted tax deducted at source (TDS) against invoices that it received from BCCI, but it never paid the