India’s Byju’s announced on Thursday that a U.S. court rejected its lenders’ attempts to block the company’s settlement with the Indian cricket board, calling it a “win” for its ongoing “turnaround efforts.”
The education technology company recently resolved a $19 million payment dispute with the Board of Control for Cricket in India (BCCI). Following this resolution, an Indian tribunal ordered a halt to insolvency proceedings against Byju’s.
However, Glas Trust, a U.S.-based entity representing some lenders to a Byju’s group company, opposed the halt, accusing founder Byju Raveendran and his brother of using funds owed to the lenders to settle the BCCI dues.
Judge Brendan Shannon of the Delaware Bankruptcy Court rejected Glas Trust’s application for a temporary restraining order aimed at blocking the BCCI settlement, as Byju’s stated in a release.
The timing of Glas Trust’s application for the restraining order remains unclear, and the Trust has not yet responded to Reuters’ request for comment. Byju Raveendran’s brother, who made the payments, clarified that the funds came from “personal funds” and the liquidation of personal assets.
Byju’s emphasized that the court’s decision affirmed it had no jurisdiction over the BCCI settlement and recognized that granting Glas’ request would have been an extraordinary and unjustified measure.
In recent years, Byju’s has faced significant challenges, including boardroom exits, an auditor resignation, and a public dispute with foreign investors over alleged mismanagement. The company, which was once valued at $22 billion, is now valued at less than $3 billion, though it has consistently denied any wrongdoing.
