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

By Aditya Kalra

NEW DELHI (Reuters) – U.S.-based Glas Trust may not have the authority to represent creditors seeking more than $1 billion from Indian food giant Byju’s in an insolvency proceeding, the official appointed by court directing the company in a letter. .

Byju’s was once a favorite of global investors and was valued at $22 billion in 2022, but now faces insolvency due to its dispute with US creditors. The company gained popularity by offering online training courses during the COVID-19 pandemic.

Its insolvency officer, Pankaj Srivastava, told Glas in a September 1 letter that most of the creditors it represented no longer have business rights as part of the agreements with Byju’s and cannot file a claim.

In a potential setback for US lenders, Srivastava also asked Glas to clarify its position and “provide supporting documents”, according to the letter, which is not public but seen by Reuters.

Byju’s, started in 2011, has suffered numerous setbacks in recent months, from boardroom exits and criticism over delayed financial disclosures to the resignation of the auditor.