An Indian appeals tribunal halted Insolvency proceedings against the educational technology firm Byju's on Friday.
The company agreed to settle a £14.8 million unpaid sponsorship debt owed to the country's cricket board.
Byju's, which gained popularity during the pandemic for its online learning products, faced financial challenges as students returned to classrooms. The company's valuation, once over £15 billion, has dropped significantly by an estimated 90 per cent.
Last month, a lower tribunal pushed Byju's into insolvency following the Board of Control for Cricket in India's (BCCI) claim of an unpaid debt of £14.8m for sponsoring Indian team jerseys during international matches.
Byju's appealed the National Company Law Tribunal's bankruptcy order and simultaneously worked out a settlement with the cricket board. On Friday, the National Company Law Appellate Tribunal (NCLAT) in Chennai approved the settlement and set aside the earlier order.
"In view of these facts, the settlement is hereby approved and the appeal succeeds and the impugned order is set aside," local media quoted the NCLAT as saying.
Byju's described the ruling as a "major victory" in a statement, saying its teams would "continue to work hard to strengthen stakeholder confidence and reinforce their commitment to serve millions of students."
(With inputs from AFP)
