A US court ruling that placed into bankruptcy units associated with Indian education technology company Byju’s took an official in the firm’s home country by surprise

16 Sep, 2024

Epic and the other Byju units opposed the forced bankruptcy. In a September court filing, they claimed that the lenders lacked legal standing to initiate the bankruptcy and argued the filings were an improper “tactical maneuver “meant to get an edge over the Byju units in related litigation. A US court ruling that placed into bankruptcy units associated with Indian education technology company Byju’s took an official in the firm’s home country by surprise. The decision, made at a Tuesday hearing in Delaware, will lead to involuntary Chapter 11 bankruptcy of units including Neuron Fuel Inc., Epic! Creations Inc. and Tangible Play Inc., court papers showed. The order was made as a default judgment after the units failed to share requested information with creditors. The development was “surprising” and “in conflict” with insolvency proceedings in India, wrote Pankaj Srivastava in a letter following the decision. Srivastava, appointed this year as Byju’s Interim Resolution Professional, is requesting to stay the effect of the bankruptcy. The “Resolution Professional has the duty to take control of the corporate debtor’s assets,” Srivastava wrote, citing Indian insolvency law. He didn’t appear at the hearing, court papers showed.