Indian education technology company Byju's will challenge insolvency proceedings initiated against it in an attempt to block the process this week, as the startup once valued at $22 billion tries to tide over the crisis, two sources said on Wednesday.
The National Company Law Tribunal in the southern state of Karnataka on Tuesday ordered insolvency proceedings against the company after a complaint by the cricket board for not paying $19 million in dues. A court-appointed professional is currently running the company.
Byju's has suffered numerous setbacks in recent years, including boardroom exits and a tussle with investors who accused CEO Byju Raveendran of corporate governance lapses, job cuts and a collapse in its valuation to less than $2 billion. Byju's has denied any wrongdoing.
An appeal will be filed in the companies law appeals tribunal this week, the sources said. Settlement talks are ongoing with the Indian cricket board but the company wants to block the insolvency process, said one of the sources.
Byju's did not immediately respond to a request for comment.
Byju's, which operates in more than 21 countries, became popular during the COVID-19 pandemic by offering online courses. It also offers in-person coaching classes.
The company's assets will remain frozen during the insolvency process.
The company has previously said it wishes to "reach an amicable settlement" with the Indian cricket board despite the insolvency proceedings.
