A US judge has declined to halt a debt payment intended to absolve Indian educational tech company Byju’s from insolvency proceedings in India. US Bankruptcy Judge Brendan Shannon instructed American lenders to address their issues with the transaction in an Indian court. The lenders had sought to prevent Riju Ravindran, brother of Byju’s founder, from making a $19 million payment to India’s cricket governing board. This payment facilitated Byju’s in overcoming an insolvency case in India’s judicial tribunal.
Judge Shannon expressed concerns about intervening in foreign legal processes. GLAS Trust Company, representing lenders owed $1.2 billion, contended that Ravindran’s payment should be directed to them. However, Shannon dismissed their request, with Ravindran’s lawyer, Sheron Korpus, arguing that such a move would undermine the Indian legal system and was a strategy to prolong a bankruptcy case initiated in India by the cricket board.
US Bankruptcy Judge John Dorsey has previously ruled against Ravindran on related issues, criticizing his actions while he was director of Byju’s unit in Delaware. The dispute involves $533 million, which lenders claim Ravindran has misappropriated, a charge he has failed to conclusively refute.
This conflict underscores the broader financial turmoil impacting Byju’s and highlights the complexities of cross-border insolvency cases.
[Source: Bloomberg.com]
Original Story https://www.livemint.com/news/india/byjus-us-judge-rejects-effort-to-stop-payment-to-india-cricket-11723061711456.html
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