MUMBAI: An Indian appeals tribunal stopped bankruptcy proceedings against troubled educational technology firm Byju on Friday after the company agreed to settle a $19-million unpaid sponsorship debt owed to the country’s powerful cricket board.
Byju’s, once one of India’s most hyped start-ups, rode a boom in demand for online learning products during the coronavirus pandemic but crashed hard after locked-down students returned to classrooms.
The ruling provides some relief to the company, which was once valued at more than $20 billion but has since seen its valuation crash by an estimated 90 percent.
A lower tribunal had last month pushed Byju’s into insolvency after the Board of Control for Cricket in India (BCCI) claimed an unpaid debt of 1.59 billion rupees ($19 million) for sponsoring the jerseys of the Indian team during international cricket matches.
The firm had filed an appeal against the National Company Law Tribunal bankruptcy order, but also worked out a settlement with the cricket board.
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