An Indian tribunal began bankruptcy proceedings against troubled educational technology firm Byju's on Tuesday over a £14.6 million unpaid sponsorship debt owed to the country's powerful cricket board.
Byju's had ridden a boom in demand for online learning products during the coronavirus pandemic but crashed hard after locked-down students returned to classrooms.
Tuesday's ruling was the latest blow to the fallen company, once one of India's most hyped start-ups that has since lost more than 90 percent of its peak £15.4 billion valuation.
The Board of Control for Cricket in India (BCCI) had claimed an unpaid debt of 1.59 billion rupees (£14.6 million) for sponsoring the jerseys of the Indian team during international cricket matches.
The National Company Law Tribunal (NCLT) in Bengaluru accepted a petition from the board and ordered the appointment of an administrator to oversee Byju's insolvency.
"The existence of a debt and a default in the payment of debt is clearly established," the tribunal said in its order.
A Byju's spokesperson said in a statement that the firm was looking to reach a settlement with the BCCI.
"As we have always maintained, we wish to reach an amicable settlement with BCCI and we are confident that, despite this order, a settlement can be reached," the spokesperson said.
"In the meantime, our lawyers are reviewing the order and will take necessary steps to protect the company's interests."
(With inputs from AFP)
