An Indian tribunal began bankruptcy proceedings against troubled educational technology firm Byju鈥檚 on Tuesday over a $19 million unpaid sponsorship debt owed to the country鈥檚 powerful cricket board.
Byju鈥檚 had rode a boom in demand for online learning products during the coronavirus pandemic but crashed hard after locked-down students returned to classrooms.
Tuesday鈥檚 ruling was the latest blow to the crashed company, once one of India鈥檚 most hyped start-ups that has since lost more than 90 per cent of its peak $20 billion valuation.
The Board of Control for Cricket in India had claimed an unpaid debt of 1.59 billion rupees ($19 million) for sponsoring the jerseys of the Indian team during international cricket matches.
The National Company Law Tribunal in Bengaluru accepted a petition from the board and ordered the appointment of an administrator to oversee Byju鈥檚 insolvency.
鈥楾he existence of a debt and a default in the payment of debt is clearly established,鈥� the tribunal said in its order.聽
A Byju鈥檚 spokesperson said in a statement that the firm was looking to reach a settlement with the BCCI.
鈥楢s we have always maintained, we wish to reach an amicable settlement with BCCI and we are confident that, despite this order, a settlement can be reached,鈥� the spokesperson said.聽
鈥業n the meantime, our lawyers are reviewing the order and will take necessary steps to protect the company鈥檚 interests.鈥�
