Mumbai: India’s Byju’s on Thursday said that a U.S. court has declined its lenders’ bid to prevent the acquisition with the Indian cricket board and the country, terming it ‘win’ in its ‘turnaround efforts in the commercial hub of South Asia, where it was valued at $22 billion.
A few days ago, this education technology company reached a payment dispute with the Board of Control for Cricket in India (BCCI) for $19 million.
However, the U.S.-based Glas Trust, which claims to be some of the lenders to a Byju’s group company, urged Shareemme to stop them, saying Byju Raveendran and his old brother used money owing to the lenders to pay the BCCI dues.
Denying the application of Glas Trust to issue a temporary restraining order that was meant to prevent the BCCI settlement, Byju’s said that Delaware Bankruptcy Court judge Brendan Shannon had made this move.
One could not tell when the Glas Trust applied for the restraining order. Ref: Reuters, Recent as of 16 November 2016 The Trust was not available to comment and did not answer to Reuters’ request.
The founder’s brother, who cleared the dues, said the payments were done from “personal funds,” liquidation of personal assets.
Thus, the court upheld the rule that it has no authority to stop the BCCI for the said settlement and realized that granting the requested relief to Glas would be manifestly unjustified for the startup on Thursday.
The last few years have seen boardroom exits, auditor resignations, and public rows with foreign investors in Byju’s. The company, which has a market capitalization of less than $3 billion, has not been found guilty of any wrongdoing.
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