Fresh trouble for BYJU'S as it receives another insolvency notice
What's the story
The National Company Law Tribunal (NCLT) in Bengaluru has served a notice to edtech giant BYJU'S, following an insolvency bid filed by customer support company Teleperformance Business Services India Ltd.
Teleperformance claims that BYJU'S failed to pay Rs. 4.82 crore, plus Rs. 21 lakh interest for its business process outsourcing services.
BYJU'S has two weeks to file objections and the operational creditor has one week to reply, with the case scheduled for March 11.
Multifold crisis
BYJU'S facing multiple insolvency petitions
BYJU'S is also dealing with another insolvency petition filed by digital marketing firm Surfer Technologies for a default of Rs. 2.3 crore.
The Board of Control for Cricket in India (BCCI) has also alleged that BYJU'S defaulted on a Rs. 158 crore payment for jersey sponsorship agreement extension.
The NCLT bench rejected BYJU'S request to dismiss the insolvency case as it sought to resolve the matter through arbitration and set the BCCI case for February 28.
Cash crunch
Financial troubles plague BYJU'S
Financial troubles have plagued BYJU'S, as its US arm filed for bankruptcy after defaulting on $1.2 billion in debt.
The company is also facing an insolvency petition from its lenders.
In a letter sent to its employees last week, BYJU'S accused some investors of plotting against the company.
It said, "Certain investors, seeing the crisis we faced, saw it as an opportunity to conspire and demand the stepping down of our founder as the group CEO of BYJU'S."