US court rejects GLAS' application for temporary restraining BCCI settlement: BYJU'S

Today, Thursday, August 8, a United States (US) court rejected GLAS Trust Company's (an independent provider of debt administration and loan agency services) application for a temporary restraining order aimed at blocking the Board of Control for Cricket in India (BCCI) settlement, EdTech firm BYJU'S said. This was stated in a report by PTI.

Earlier this month, the insolvency appellate tribunal National Company Law Appellate Tribunal (NCLAT) approved a Rs 158.9 crore dues settlement with BCCI and set aside insolvency proceedings against BYJU'S.

Furthermore, Think and Learn, which owns BYJU'S brand, said it welcomes the decision of the Delaware Bankruptcy Court to reject attempts by GLAS (purporting to represent the foreign lender consortium) to impede the company's ongoing turnaround efforts.

GLAS had also opposed the settlement with the BCCI before the NCLAT alleging the money paid by Riju Raveendran was tainted and a case of "round-tripping".

BYJU'S said that the Delaware Court ruling reinforces the validity of the settlement between the BCCI and Think & Learn, which has been approved by the NCLAT.

"The Delaware Bankruptcy Court's decision effectively puts an end to GLAS' attempts to forum shop," it said.

GLAS had tried and failed to scuttle the settlement between BCCI and one of the promoters of Byju's before the NCLAT in India, prompting them to approach the Delaware court for the same relief.

In addition, BYJU'S legal Counsel, Rishab Gupta said, "In its latest order, the Delaware court has upheld the principle of comity and thwarted GLAS' attempt to usurp the jurisdiction of the Indian courts."

An email query sent to Glas did not elicit any immediate reply, the PTI report said.