US Lenders Not on India’s Byju’s Insolvency Panel, Sources Say – Reuters

By Aditya Kalra

NEW DELHI – Glas Trust, a U.S.-based entity, is not included in a crucial panel that is managing the insolvency proceedings for Byju’s, the prominent Indian education-technology company. It will have to demonstrate the validity of the $1 billion claim made by the lenders it represents, as outlined in documents and confirmed by three sources.

Once valued at $22 billion in 2022, Byju’s has fallen from favor with global investors and is now grappling with insolvency, a situation stemming from its conflicts with U.S. lenders. The company initially gained traction by providing online training courses during the COVID-19 pandemic.

Pankaj Srivastava, the insolvency officer, communicated in a letter dated September 1 that many of the lenders represented by Glas Trust hold no significant business rights due to existing agreements with Byju’s, which prevents them from making a claim.

Consequently, U.S. lenders have encountered a setback as the insolvency panel has been restructured to exclude Glas Trust, according to three insider sources who requested anonymity.

In the September 1 letter reviewed by Reuters, Srivastava has asked Glas to clarify its standing and "provide supportive documents."

In a joint statement issued earlier on Wednesday, U.S. term loan lenders criticized the decision to exclude Glas Trust from the insolvency panel, labeling it "wholly incorrect in law and in fact."

Srivastava has not responded to requests for comments.

Byju’s, founded in 2011, has faced multiple challenges in recent months, including departures from its board, criticisms for delayed financial disclosures, and the resignation of its auditor.