The future of Byju's, the troubled edtech platform, continues to remain in dark clouds as the smartphone manufacturer has filed an insolvency plea in the NCLT (National Company Law Tribunal) against the former company.
As per a report by moneycontrol, the edtech platform has been served a notice, but the plea is expected to be heard again in the last week of this month due to the tribunal's summer break starting on May 3.
However, this is not the only insolvency plea filed against the troubled startup. Besides Oppo, Byju's has faced two new insolvency petitions in the past week. These were submitted by McGraw Hill Education, a US publishing firm, and Cogent E-Services, a customer experience solutions company.
With these new filings, the total number of insolvency pleas against Byju's has reached seven. On top of it, the company is also contending with an oppression and mismanagement plea filed by its investors.
Be it employees, customers or shareholders, Bujy Raveendran has reportedly lost the confidence of every stakeholder. The call for EGM (Extraordinary General Meeting), earlier this year, was quite evident that shareholders were disappointed with the current leadership.
"The resolutions being put forward for the EGM to consider include a request for the resolution of governance, financial mismanagement and compliance issues; the reconstitution of the board of directors, so that it is no longer controlled by the founders of T&L (Think and Learn) and a change in leadership of the company," the investor group stated two months ago.
Under the Insolvency and Bankruptcy Code of 2016, there are two types of creditors namely, operational creditors (OCs) and financial creditors (FCs). Operational creditors are those creditors who supply all the goods and services to a company but haven't received payment for the same. Whereas, financial creditors are those that provide loans to the company.
As of now, six operational creditors and one financial creditor have filed cases with the NCLT against the company.
