Byju's Insolvency Battle: Riju Ravindran Challenges GLAS Trust's Creditor Claim

Riju Ravindran, co-founder of the embattled edtech firm Byju's, has approached the National Company Law Tribunal (NCLT) seeking the removal of GLAS Trust as a financial creditor. Ravindran claims that GLAS Trust misrepresented its authority, affecting its decision-making influence on Byju's insolvency proceedings.

The petition alleges that GLAS Trust fraudulently identified itself as a financial creditor, holding less than 18 percent of voting rights with the consortium of term loan providers. Ravindran seeks to have all decisions taken by the committee of creditors nullified due to GLAS's inadequate authority under the Credit and Guaranty Agreement.

Ravindran emphasizes that the authority wielded by GLAS was not sanctioned by the requisite majority of qualified lenders, arguing that its actions are, therefore, invalid. The tribunal will hear Ravindran's plea, possibly influencing Byju's future debt and restructuring negotiations.

(With inputs from agencies.)