SC halts CoC meetings at Byju’s; tells resolution professional to maintain status quo
Supreme Court on Thursday temporarily halted all meetings related to the insolvency proceedings of debt-laden edtech firm Byju's, asking the interim resolution professional (IRP) Pankaj Srivastava to maintain status quo for the time being and not to hold any meeting of the lenders.
“Until the judgment is pronounced, the interim resolution professional shall maintain status quo and shall not hold any meeting of the committee of creditors,” a Bench led by Chief Justice of India D Y Chandrachud directed.
The apex court reserved its verdict on an appeal by US lender GLAS Trust Co LLC, the trustee for lenders owed $1.2 billion by Byju’s, against the National Company Law Appellate Tribunal's (NCLAT) order approving a settlement deal between the Think & Learn Pvt Ltd, the parent of online educational services company, and its operational creditor, the Board of Control for Cricket in India (BCCI). The lender had alleged that the money paid by Byju Raveendran’s brother Riju Ravindran was tainted.
However, the SC indicated that it will not interfere in another appeal by GLAS Trust seeking the removal of Srivastava, who had dropped the lender from the CoC, holding that it did not represent the minimum 51% of lenders in the consortium that provided a $1.2 billion term loan to Byju’s.
The apex court on Wednesday questioned Byju's decision to settle the Rs 158 crore debt that the edutech firm owed to the BCCI and leaving substantial Rs 15,000 crore dues of other creditors, including Glas Trust.
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