ET Explainer: Byju's steps on the insolvency tripwire. What happens next?

economictimes.indiatimes.com:

liquidation over a $19 million payment default to the Board of Control for Cricket in India (BCCI). The company, once valued at $22 billion, is undergoing insolvency proceedings — a development that raises questions on what could happen to its 5,000 employees, including teachers, in addition to thousands of vendors and customers.

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What transpired over the last week?

For more than a year now, the Bengaluru-based edtech company has been in turbulent waters with issues ranging from payment defaults, staff layoffs, boardroom battles and alleged lapses in corporate governance. However, in the case with BCCI over non-payment of Rs 158 crore (almost $19 million) pertaining to a sponsorship deal of the Indian cricket team, Byju’s has seemingly stepped on a tripwire that has resulted in the National Company Law Tribunal (NCLT) admitting the company for insolvency proceedings on July 16.

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What does it mean to get admitted into insolvency proceedings?

NCLT’s decision triggered the corporate insolvency resolution process (CIRP) for the company. The tribunal appointed Pankaj Srivastava as the interim resolution professional (IRP), who will be in charge