Latest news with #ThinkandLearn
Time of India
6 days ago
- Business
- Time of India
EY-backed RP sues Byju's Dubai-based marketing agent for Rs 1,597 crore
Academy Empower your mind, elevate your skills The resolution professional (RP) of Think and Learn , an insolvent company which houses the Byju's brand of products, has filed a Rs. 1,597 crore lawsuit against a Dubai-based marketing agent that dealt in the company's products in that jurisdiction, according to people familiar with the matter. The lawsuit was filed at India's National Company Law Tribunal ( NCLT ).Think and Learn's insolvency proceedings at NCLT are ongoing at the behest of GLAS Trust , a custodian claiming to represent an aggrieved set of international lawsuit filed by Shailendra Ajmera , the EY-backed resolution professional of Think and Learn, claims that Byju's had a commercial arrangement with Dubai-based More Ideas General Trading and the latter has failed to repatriate payments to the former, as per those in the lawsuit also implicates Byju's former directors Byju Raveendran , Riju Ravindran and Divya Gokulnath , pinning responsibility on them for making good the claim, they Ideas General Trading had not responded to ET's queries until press time.'Byju's founders vigorously dispute all claims made against them by the Resolution Professional (RP) of Think & Learn in the CIRP procedure,' said a statement made on their behalf. Byju's founders claimed they had filed cases in court challenging developments related to the insolvency proceedings and that the RP was trying to shift attention from those.'The latest case is similar to a series of baseless and false cases filed by the RP in the last few months in an attempt to shift the attention from the two main cases filed by the founders in NCLT — The first one for the RP's removal on grounds of collusion and fraud and the second one challenging the authority of GLAS to represent the lenders'As per sources familiar with the lawsuit filed by Think and Learn's RP, More Ideas General Trading had the rights to market the Byju's range of products in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates on a revenue sharing lawsuits were filed through Ajmera's lawyers Chandhiok and Ajmera and Chandhiok and Mahajan had not responded to ET's queries until press time on Ravindran had in early April filed a petition with the NCLT claiming Ajmera should be removed as the RP of Think and Learn because EY has been an adviser to the company prior to its admission into insolvency proceedings, raising the issue of conflict of interest. He has also claimed that EY's appointment is a has also claimed that the insolvency proceedings of Think and Learn are a sham because GLAS Trust which claims to represent the company's lenders did not have a locus standi to enforce claims against the company because it does not have the backing of majority of the Trust was entrusted with acting as a custodian for a $1.2 billion term loan that was taken by Think and Learn's US subsidiary. That loan was guaranteed by Think and Learn. This is why Glas Trust claims it has rights to enforce insolvency proceeding against the company in the loan was a key clause that said that any action to enforce repayment of the loan will require consent of majority of lenders. Byju's former directors have repeatedly claimed that this clause is unmet and hence the insolvency proceedings in India are void.'Byju's founders reserve all rights to bring actions against those parties that have caused damage to them personally and their businesses. Claims have been raised in India against Glas Trust, the former subsidiary of Think & Learn, that Glas Trust now claims to control and others. Claims are being contemplated against those parties in other jurisdictions,' as per the statement made on behalf of the founders.
Time of India
19-06-2025
- Business
- Time of India
Byju's RP's suit claims directors owe compensation to company under IBC laws
An EY-backed resolution professional (RP) has filed lawsuits at the National Company Law Tribunal (NCLT) claiming former Byju's directors owe compensation to the company for fraudulent transfers of the company's assets, according to people familiar with the matter. The lawsuits invoke a provision under the Insolvency and Bankruptcy Code which provides legal recourse to reverse transactions undertaken by a company's previous management. Shailendra Ajmera, the RP of Think and Learn, which houses Byju's ed tech business and is undergoing insolvency, has claimed in the lawsuits filed in late April that two separate sets of transactions were detrimental to the company. One of them resulted in a $533 million investment held by a US subsidiary moving to related companies and the other involved a sum of Rs 130 crore moving from Think and Learn to its subsidiary in India, said the people. Think and Learn was, therefore, deprived of these funds, it is claimed. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Elegant New Scooters For Seniors In 2024: The Prices May Surprise You Mobility Scooter | Search Ads Learn More Undo The lawsuits implicate the company's three former directors – Byju Raveendran , Riju Ravindran and Divya Gokulnath . Ajmera has demanded that the sums be made good to the company by the former directors. ETtech Live Events Riju Ravindran had in early April filed a petition with the NCLT claiming Ajmera should be removed as the RP of Think and Learn because EY has been an adviser to the company prior to its admission into insolvency proceedings, raising the issue of conflict of interest. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Further, he claimed that EY was perpetuating a fraud and acting in the interest of Glas Trust, which claims to be representing the majority of Think and Learns creditors, and not in the interest of the company. In a recent petition filed with the NCLT, Riju Ravindran claimed that Glas Trust, which is the lenders' agent that forms 99% of the committee of creditors of Think and Learn, is not legally entitled to represent the lenders. He claimed that Glas Trust didn't have the support of 50% of the lenders as required in the borrowing agreements entered between Think and Learn and its lenders. He also claimed that it had no authority to instruct Ajmera or undertake any acts towards the company's insolvency. Ajmera, his lawyers Chandhiok and Mahajan, Byju Raveendran and Riju Ravindran did not respond to ET's queries. One of Ajmera's two lawsuits follows a recent Delaware court ruling in the US where Byju's Alpha's move to transfer a $533 million ownership interest in a set of funds called Camshaft Funds to related entities was under question. Byju's Alpha is a US subsidiary of Think and Learn. The Delaware court termed the transfers illegal and demanded their reversal. The former directors have appealed the ruling.
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Business Standard
05-06-2025
- Business
- Business Standard
Byju's co-founder moves NCLT to remove GLAS Trust from creditors' panel
Riju Ravindran, co-founder and former promoter of Think and Learn (which owns edtech firm Byju's), has approached the National Company Law Tribunal (NCLT) seeking the removal of GLAS Trust Company LLC from the list of financial creditors and from the Committee of Creditors (CoC). In his petition, Ravindran alleged that GLAS Trust has 'fraudulently represented itself to be a financial creditor' and urged the tribunal to direct the firm to 'prove its authority to represent the creditors before it', according to a report by Press Trust of India. Limited voting rights claimed Ravindran argued that GLAS Trust, which acts on behalf of a US-based creditor of Byju's, only holds 17.38 per cent of the voting rights in the term loan consortium. He stated that, under the agreement, actions on behalf of the lenders can only be taken with authorisation from those holding more than 50 per cent of the term loan. GLAS Trust is the trustee for lenders to whom Byju's owes around $1.2 billion. Ravindran asked the NCLT to 'direct removal of GLAS Trust Company LLC from CoC of Think and Learn forthwith and to, consequently, set aside and declare all decisions taken by the GLAS Trust Company LLC, as a member, as nullity'. The Bengaluru bench of the NCLT is expected to hear the matter on Friday. Request to halt CIRP As a temporary relief, Ravindran also sought a stay on the Corporate Insolvency Resolution Process (CIRP) of Think and Learn until GLAS can prove it has the proper authorisation from over 50 per cent of qualified lenders, as per the Credit and Guaranty Agreement signed on November 24, 2021. This application was filed in the main petition initiated by the Board of Control for Cricket in India (BCCI), which triggered the CIRP against the company. Ravindran accused GLAS of misrepresenting itself as a financial creditor and obtaining orders from NCLT on that basis. 'This fundamental fraud has been perpetrated upon this tribunal by GLAS by illegally claiming that it has the authority to represent lenders under the Credit and Guaranty Agreement dated 24.11.2021 without possessing the requisite mandate from 51 per cent of qualified lenders,' the petition stated. He also claimed that a contractual disqualification mechanism, exercised by the company, had led to the disqualification of 61.43 per cent of the term loan holders, effectively reducing GLAS' authority to only 17.38 per cent. 'This disqualification has reduced GLAS' actual authority to represent merely 17.38 per cent of the term loan, rendering every action taken by GLAS in these proceedings as ultra vires and void ab initio,' he said. Accusation of conspiracy Ravindran further alleged that GLAS had 'orchestrated' a scheme involving Ernst & Young (EY) and successive Resolution Professionals to manipulate the CIRP and maintain unlawful control over the process, despite being aware of its lack of proper authority. Byju's Alpha Inc, a fully-owned US subsidiary of Think and Learn, had taken a $1.2 billion loan under the Credit and Guaranty Agreement on 24 November 2021. This five-year loan was due to mature in November 2026. However, GLAS issued a notice of default and tried to accelerate the repayment in March 2023 — just 15 months into the agreement and well before the maturity date. After discovering that some lenders had replaced original investors in violation of the agreement, Think and Learn issued disqualification letters to Redwood entities on 5 June 2023 to protect its position. Disputed representation figures GLAS, which also filed an insolvency application, claimed that 72.2 per cent of lenders had approved the move. Ravindran countered this, stating that 61.43 per cent of those were disqualified lenders. 'It is submitted that out of these 72.20 per cent, 61.43 per cent are disqualified lenders. Therefore, from the lenders who consented (or voted 'yes'), only about 10.77 per cent are not disqualified lenders. The percentage of disqualified lenders who consented in proportion to non-disqualified lenders is 6.61 per cent. This would, perforce, mean that GLAS has the authority to represent only 17.38 per cent of the term loan,' he added.
Time of India
03-06-2025
- Business
- Time of India
Aakash moves NCLT to implead E&Y in oppression, mismanagement case filed by Byju's
Aakash Educational Services has filed a plea in the insolvency tribunal NCLT, seeking the dismissal of a petition submitted by edtech firm Byju's and to implead consultancy firm E&Y, along with its partner Ajay Shah. In its application, Aakash Educational Services has sought dismissal of the petition filed by Think and Learn , owner of Byju's, on the grounds of vexatious litigation couched as an oppression and mismanagement litigation, which is not maintainable in the law. Aakash Educational Services (AESL) submitted that presence of E&Y is "imperative" in the matter, as it was not only privy but the architect of several key financial and strategic decisions taken by it. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Think and Learn has filed a Company Petition before the Bengaluru Bench of the National Company Law Tribunal (NCLT) against AESL, alleging "oppression and mismanagement" in the affairs of the company under Sections 241 and 242 of the Companies Act, 2013. Think and Learn is a minority shareholder of Aakash Educational Services, which operates 316 centres throughout the country. Live Events In the company application, AESL has requested to implead and make E&Y and its partner Ajay Shah a respondent alleging "the records indicate that he helped and played a material and consistent role in advising and facilitating various parties whose interests were privileged and exclusive in a material sense". Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories "The proposed Twenty-sixth Respondent (Ajay Shah) is not only privy but the architect of several key financial and strategic decisions of the Applicant during the periods relevant to the Company Petition," it said. Shah and the team of E&Y (which is respondent no 27) always had access to all privileged and confidential information and were part of the business and strategy discussions of the Applicant Company. "In any event, since all team members, including Shah, represented E&Y, the said Respondent is being impleaded," AESL submitted, adding that "for reasons of structural and professional accountability, the presence of E&Y is imperative". AESL also alleged the Resolution Professional of Byju's, which is currently going through an insolvency resolution process, "belongs to the self-same organisation and has made no disclosure to the Tribunal about his knowledge or organisational association either in the Company Petition or before the Tribunal at the time of accepting the appointment". "This serious matter for the administration of the Insolvency and Bankruptcy Code, 2016 (IBC) requires thoughtful attention by the Tribunal," AESL submitted. It has requested the NCLT to direct the proposed respondents to file an affidavit on oath disclosing details of all transactions that Ernst & Young LLP has been involved in since 2021 till date, in relation to all related parties, including Think and Learn and GLAS Trust Company LLC. The broader legal fight centres around the governance and control of AESL, following the failed acquisition by Byju's -- which has been reeling under charges of mismanagement, and alleged misuse of company funds. Meanwhile, CrestLaw Partners, acting on behalf of Manipal Group (which holds significant stake in AESL), also approached EY, flagging the firm's involvement in advising the Manipal Group in material matters, involving tax and regulatory implications, accounting treatment among others, pertaining to AESL.
