Glas Trust may not have authority to act for US lenders in Byju’s insolvency, letter says

By Aditya Kalra

NEW DELHI (Reuters) -U.S.-based Glas Trust may not have the authority to represent lenders who are seeking more than $1 billion from Indian ed-tech giant Byju’s under an insolvency process, the court-appointed officer running the company said in a letter.

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.

In a potential setback for U.S. lenders, Srivastava also asked Glas to clarify its position and “provide supportive documents,” the letter, which is not public but was seen by Reuters, showed.

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.