US lenders take Byju’s to NCLT to initiate insolvency proceedings

US-based lenders to Byju’s have approached the National Company Law Tribunal (NCLT) Bench in Bengaluru to start corporate insolvency proceedings against the edtech company.

The ad hoc group of lenders (the Ad Hoc Group), which lent $1.2 billion as term loans (Term Loans) to Byju’s, said GLAS Trust Company LLC (as administrative agent and collateral agent of the Term Loans) had filed a petition against Think & Learn (doing business as Byju’s) before the Bench.

The lenders said this was done after over 16 months of efforts on behalf of the Ad Hoc Group to restructure the loans. If these efforts were successful, it would have solved the loans’ outstanding defaults and acceleration, and ended litigation while avoiding further enforcement action, they added.