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Byju's exploring out-of-court settlements with two of its creditors: Report
Photo Courtesy: ICC website

Byju's exploring out-of-court settlements with two of its creditors: Report

| @indiablooms | 28 May 2024, 08:28 pm

New Delhi: Troubled ed-tech firm Byju's is looking into out-of-court settlements with two of its creditors, Teleperformance and Surfer Technologies, the National Company Law Tribunal (NCLT) was informed on Tuesday, media reported.

Senior advocate Pramod Nair, representing Byju's, requested the tribunal to adjourn the insolvency pleas to the third week of June to facilitate settlement talks between Byju’s and the two operational creditors. Consequently, the NCLT has postponed the cases to June 26, Moneycontrol reported.

Under the Insolvency and Bankruptcy Code, 2016, there are two types of creditors: operational creditors, who provide goods and services to a business, and financial creditors, who lend money to the company.

Byju's has been attempting to settle with Teleperformance, a French firm, for over a month.

During the May 28 hearing, the company also expressed its intention to settle with Surfer.

Nair informed the tribunal that since the outstanding amounts were relatively small, Byju's was aiming to negotiate a settlement, the report said.

Byju's owes Surfer Technologies Rs. 2.3 crore for generating and passing leads, which were overseen and authorized by Byju's.

In an earlier hearing, the company confirmed that all debts to Surfer were admitted.

In April, the NCLT had directed Byju's to settle with Teleperformance, but no resolution was reached.

The tribunal cautioned both parties to settle soon, emphasizing that the matter could not be indefinitely prolonged. Byju's and Teleperformance had entered into a service agreement in April 2022.

Between March and August 2023, Teleperformance issued over 20 invoices amounting to more than Rs. 4 crore, which remain unpaid.

Teleperformance stated that Byju's agreed to a staggered payment plan: Rs. 1.5 crore in the first tranche, Rs. 2 crore in the second, and Rs. 2.2 crore in the final tranche.

The NCLT has adjourned all these pleas to June 26, with seven petitions currently pending against Byju's at the Bengaluru bench of NCLT.

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