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)
Shailesh Solanki, Andrew Yaxley of Booker Group and Kalpesh Solanki
And , Sir Chris Bryant
