BYJU’S, the Indian edtech giant, is currently facing insolvency proceedings with claims totaling over INR 13,027 crore. These claims have been submitted by 1,887 creditors, with many still under review. The largest portion of these claims, approximately 88%, comes from GLAS Trust, which has filed for dues amounting to INR 11,432 crore.
In addition, Aakash Educational Services, a wholly-owned subsidiary of BYJU’S, has submitted a claim for INR 1,404 crore. The claims underscore the financial strain the company is under as it navigates legal disputes and restructuring efforts.
The insolvency proceedings were initiated after a group of lenders, led by GLAS Trust, moved to enforce their rights under a Term Loan B (TLB) facility, citing an alleged default by BYJU’S. The company has been engaged in ongoing disputes with its creditors regarding loan terms, repayments, and debt restructuring plans. These issues have placed significant pressure on BYJU’S financial stability and its broader operations.
Despite these challenges, BYJU’S continues to negotiate with creditors to find a resolution that could help stabilize its business. The company remains focused on minimizing disruptions, particularly for its key subsidiary, Aakash Educational Services, which plays a crucial role in its educational offerings.
Summary:
- BYJU’S is facing claims of over INR 13,027 crore from 1,887 creditors, led by GLAS Trust.
- The insolvency proceedings were initiated due to disputes over a Term Loan B facility and alleged default by BYJU’S.
- BYJU’S is working with creditors to resolve the issues while aiming to stabilize its operations and protect its subsidiary, Aakash Educational Services.