Glas Trust also questioned the “actions” of the resolution professional for allowing Byju Raveendran to continue as a representative of BYJU’S on Aakash’s board
The lenders also alleged that Aakash’s EGM seeks to remove all the rights of minority shareholders while conferring special rights on the major shareholder Ranjan Pai
Meanwhile, the counsel for the resolution professional urged the NCLT bench to prioritise the withdrawal of the BCCI’s insolvency petition against the troubled edtech major
A consortium of BYJU’S’ US-based lenders have reportedly opposed the extraordinary general meeting (EGM) called by the troubled edtech startup’s subsidiary Aakash on Wednesday (November 20).
As per Economic Times, Glas Trust, which represents a group of US-based lenders that lent $1.2 Bn to BYJU’S, told the National Company Law Tribunal (NCLT) that the proceedings of the meeting may affect the edtech’s insolvency process.
The creditors also questioned the “actions” of the resolution professional (RP) of BYJU'S
for allowing cofounder and CEO Byju Raveendran to continue as a representative of Think & Learn Pvt Ltd, the parent of BYJU’S, on Aakash’s board.
“The RP is not bothered even though the assets from the company are being frittered away… The RP needs to clarify how he allowed him to either continue on the board even after taking over or if he sent his representative, as an EGM cannot be called without a qualified board…,” Glas Trust’s counsel was quoted as saying.
The advocate for the lenders also argued that Aakash’s EGM seeks to “remove all the rights of minority shareholders through an amendment while conferring special rights on the major shareholder Ranjan Pai’s Manipal Education and Medical Group”.
Glas Trust’s counsel said that the consortium of lenders hold about 40% stake in Aakash and termed the EGM as a “clear act of oppression”.
As per the report, multiple minority shareholders of Aakash have also filed a mismanagement and oppression petition against the current management of the entity.
Meanwhile, the RP’s counsel urged the NCLT bench to prioritise the withdrawal of insolvency petition by the Board of Control for Cricket in India (BCCI) against the troubled edtech major.
Citing its rationale, the RP’s lawyer contended that the settlement between BYJU’S and BCCI happened before the constitution of the Committee of Creditors (CoC), and as such the tribunal should prioritise the withdrawal application before exploring other issues.
“The Supreme Court has said that there is now a framework for withdrawal. The decision making body is NCLT and not CoC,” added RP’s counsel.
This comes just a day after the RP’s lawyer said that the cricket board had moved an application before the NCLT to withdraw its insolvency petition against BYJU’S. The move was opposed by the edtech startup’s creditors Glas Trust and Aditya Birla Finance.
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