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The National Company Law Appellate Tribunal (NCLAT) has approved a settlement between Byju’s and the Board of Control for Cricket in India (BCCI), halting insolvency proceedings.
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However, legal experts question the decision, citing concerns about the company’s ability to pay off billions in debt claims.
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Byju’s still faces significant challenges, including $200 million held in an escrow account, ongoing legal battles, and unpaid salaries and vendor payments.
Byju’s has been granted insolvency relief by the NCLAT, but legal experts are skeptical about the decision. The company still owes billions in debt claims, and it is unclear how it will pay off these debts. The settlement with BCCI may have saved the company from insolvency proceedings, but it does not address the larger issue of debt repayment.
Legal experts are concerned that the decision may be a “mockery of the Insolvency and Bankruptcy Code (IBC)”. The company’s ability to pay off debts is still in question, and the settlement may have given the promoter, Byju Raveendran, more time to “siphon money or alienate assets”. The case highlights the challenges of insolvency proceedings in India and the need for a more effective resolution process.
