Foreign lenders file insolvency plea against Byju's

MUMBAI: In yet another setback for Byju's, its foreign lenders have filed a petition to initiate corporate insolvency resolution proceedings against the firm.

The petition has been filed with the Bengaluru bench of NCLT, a representative of the lenders confirmed. The failure on part of Byju's to honour its obligations under the term loan necessitated the move, the lenders said. "The myriad issues facing Byju's are entirely self-inflicted. For months, we sought to avoid this exact situation, repeatedly attempting to engage constructively with Byju's management and other stakeholders, and providing them with multiple paths to reach a mutually agreeable resolution, even after the Delaware court confirmed the validity of Byju's defaults. It is our belief now that Byju's management has no intention or ability of honouring its obligations," the ad hoc group of lenders said.

Byju's confirmed the development, terming the NCLT proceedings by lenders as "premature and baseless".