U.S.-based Glas Trust is not part of a key panel overseeing the insolvency proceedings of Indian education-technology giant Byju's, and will need to substantiate the $1 billion claim of lenders it represents, according to documents and three sources.
Byju's was once a darling of global investors and valued at $22 billion in 2022, but is now facing insolvency due to its dispute with U.S. lenders. The company became popular by offering online training courses during the COVID-19 pandemic.
Its insolvency officer, Pankaj Srivastava, told Glas in a Sept. 1 letter that a majority of the lenders it was representing have no business rights left as part of agreements with Byju's, and can't stake a claim.
As a result, in a setback for U.S. lenders, the insolvency panel has been reconstituted without Glas Trust, according to three sources with direct knowledge of the matter, who spoke on condition of anonymity.
Srivastava has asked Glas to clarify its position and "provide supportive documents," the Sept. 1 letter, which is not public but was reviewed by Reuters, showed.
U.S. term loan lenders in a joint statement early on Wednesday said the decision to exclude Glas Trust from the insolvency panel "is completely wrong in law and in fact."
Srivastava did not respond to a request for comment.
Byju's, started in 2011, has suffered numerous setbacks in recent months, from boardroom exits and criticism over delayed financial disclosures to an auditor resignation.
