Embattled edtech major Byju’s problems keep mounting as Chinese electronics manufacturer OPPO Mobiles Pvt Ltd has approached the Bengaluru bench of the National Company Law Tribunal (NCLT) for an insolvency plea against the company. The NCLT has admitted the case and is scheduled to hear it next on May 28.
The Section 9 plea seeks to initiate a corporate insolvency resolution process against Byju’s under the Insolvency and Bankruptcy Code (IBC), 2016.
Additionally, sources close to the matter confirmed that the tribunal had admitted the case. Byju’s has been given two weeks to respond.
The addition of this plea shows the mounting dues that Byju’s owes to list such entities. Other IBC cases against the company are its $1.2 Bn Term Loan B (TLB) lenders, the Board of Control for Cricket in India (BCCI), outsourcing firm Teleperformance Business Services, and IT service provider Surfer Technology.
In the US, BYJU’S is facing a case filed by lender Glas Trust alleging over-defaulting on a loan raised by US-based creditors.
Along with this, it is also fighting ‘oppression and mismanagement’ plea filed by a group of four of its investors over its $200 Million via rights issues, among others.
The NCLT has deferred the hearing of the ‘oppression and mismanagement plea’ filed against Byju’s by investors to June 6.
Byju’s has paid partial salaries to employees for March, reported businessline. Byju Raveendran, founder and CEO of Think and Learn, has raised debt in his personal capacity to pay the salaries of employees for March.
Byju’s has also taken multiple layoffs, including the 500 employees being laid off.
Recently, Arjun Mohan, the CEO of Byju’s India, resigned from his position a little over six months after he took over, with founder Byju Raveendran resuming daily operational responsibilities, the company said in a statement. Mohan will transition to an external advisory role.