Kerala HC directs Byju's RP, EY India chairman, Glas Trust to appear on Friday
The Kerala High Court on Thursday ordered Byju’s parent Think & Learn’s (TLPL) resolution professional (RP), Shailendra Ajmera, an authorised representative of Glas Trust, which represents the edtech firm’s US lenders, and EY India chairman Rajiv Memani to appear on December 5 in contempt proceedings related to its foreign assets.
The order was passed in a petition filed by Voizzit Technology, which has claimed rights over TLPL’s foreign assets, including kids’ learning platform Epic and coding platform Tynker.
Based on the petition, the Kerala High Court in May had restrained the RP and the lenders from selling these assets. However, the US bankruptcy attorney Claudia Springer, who has been managing the insolvency proceedings of Byju's subsidiaries in the US, had gone ahead with the auction of these assets.
On June 10, ET reported that Byju Alpha, a special vehicle set up by founder Byju Raveendran to receive the $1.2 billion loan, is selling its US assets at a fraction of the price it paid to acquire them, as creditors pushed to recover their dues from the edtech firm whose American operations are undergoing bankruptcy proceedings.
Chicago-based computer science education company CodeHS acquired Tynker for $2.2 million in cash, while China's TAL Education Group paid $95 million for Epic.
The proceeds from the sale were used to repay Byju’s creditors. Last year in June, some lenders within a consortium that loaned $1.2 billion to Byju’s had initiated bankruptcy proceedings against the three subsidiaries.
According to a court document filed by TLPL cofounder Riju Ravindran, these international subsidiaries, including Tangible Play, Great Learning, Alpha, Epic, and Tynker, were acquired for an aggregate cost of about $1.42 billion.
Recently, a US bankruptcy court order directed Raveendran to pay more than $1 billion, ruling that he obstructed efforts to trace the $533 million that the edtech’s lenders alleged he had diverted from an American subsidiary.
The court ruled that Raveendran had ignored its orders and failed to participate in the proceedings after a group of lenders who had given a $1.2 billion term loan to the subsidiary, Byju’s Alpha, filed a motion for default against him on August 11. On Thursday, Raveendran said that he will file an appeal against this US order.
The order was passed in a petition filed by Voizzit Technology, which has claimed rights over TLPL’s foreign assets, including kids’ learning platform Epic and coding platform Tynker.
Based on the petition, the Kerala High Court in May had restrained the RP and the lenders from selling these assets. However, the US bankruptcy attorney Claudia Springer, who has been managing the insolvency proceedings of Byju's subsidiaries in the US, had gone ahead with the auction of these assets.
On June 10, ET reported that Byju Alpha, a special vehicle set up by founder Byju Raveendran to receive the $1.2 billion loan, is selling its US assets at a fraction of the price it paid to acquire them, as creditors pushed to recover their dues from the edtech firm whose American operations are undergoing bankruptcy proceedings.
Chicago-based computer science education company CodeHS acquired Tynker for $2.2 million in cash, while China's TAL Education Group paid $95 million for Epic.
The proceeds from the sale were used to repay Byju’s creditors. Last year in June, some lenders within a consortium that loaned $1.2 billion to Byju’s had initiated bankruptcy proceedings against the three subsidiaries.
According to a court document filed by TLPL cofounder Riju Ravindran, these international subsidiaries, including Tangible Play, Great Learning, Alpha, Epic, and Tynker, were acquired for an aggregate cost of about $1.42 billion.
Recently, a US bankruptcy court order directed Raveendran to pay more than $1 billion, ruling that he obstructed efforts to trace the $533 million that the edtech’s lenders alleged he had diverted from an American subsidiary.
The court ruled that Raveendran had ignored its orders and failed to participate in the proceedings after a group of lenders who had given a $1.2 billion term loan to the subsidiary, Byju’s Alpha, filed a motion for default against him on August 11. On Thursday, Raveendran said that he will file an appeal against this US order.
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