India’s cricket governing body has filed a case against the parent of cash-starved education provider Byju’s, a setback for Byju Raveendran, the founder of what was once India’s hottest startup.
The dispute between the Board of Control for Cricket in India and Think & Learn Pvt will next be heard on Dec. 22, according to the website of the National Company Law Tribunal, a court for insolvency proceedings.
At the root of the matter is a missed payment of sponsorship royalties of about $20 million, according to people familiar with the matter, who asked not to be named because the matter is private. The filing is under India’s insolvency and bankruptcy code, one of the people said.
A spokesperson for Byju’s told Bloomberg discussions to settle the matter with BCCI were underway, with an agreement hopefully achieved soon.
BCCI didn’t immediately respond to Bloomberg’s e-mailed request for comment.
The standoff constitutes a new front in the legal troubles of former teacher Byju Raveendran, whose tutoring business boomed during the pandemic only to drop off once schools reopened.
Byju’s and its creditors are already locked in conflict over a missed interest payment on a $1.2 billion term loan. Think & Learn also got served with a notice by India’s anti-money laundering agency in November.
If the company were to settle out of court with BCCI, the case would be withdrawn. But if it remains with the judiciary, the petition could, if successful, result in the appointment of an interim resolution professional to run the firm during bankruptcy.
Law firm Argus Partners is advising BCCI, according to one of the people.
Both the Economic Times and Morning Context previously reported on the matter.
