Byju's to challenge insolvency proceedings this week
Bengaluru: Education technology company Byju's will challenge insolvency proceedings initiated against it in an effort to block the process this week, as the startup, once valued at $22 billion, tries to navigate its current crisis, two sources said on Wednesday, Reuters reported.
On Tuesday, the National Company Law Tribunal in Karnataka ordered insolvency proceedings against Byju's following a complaint by the cricket board over unpaid dues of $19 million.
A court-appointed professional is currently managing the company.
Byju's has faced numerous setbacks in recent years, including boardroom exits, conflicts with investors accusing CEO Byju Raveendran of corporate governance lapses, job cuts, and a decline in its valuation to less than $2 billion. Byju's has denied any wrongdoing.
An appeal will be filed this week in the company's law appeals tribunal in New Delhi, according to the sources.
While settlement talks with BCCI are ongoing, the company aims to block the insolvency process, one source said.
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