The Board of Control for Cricket in India (BCCI) has got a major relief after the National Company Law Tribunal (NCLT) ordered insolvency proceedings against its former sponsor Byju’s.
BCCI owed Rs 158 crore by Byju’s
Byju’s, once India’s most valuable startup, has been struggling financially and failed to pay Rs 158.9 crore to the BCCI for sponsorship dues. The sponsorship agreement involved Byju’s displaying its brand logo on the Indian cricket team‘s kit and receiving various benefits like advertisement placements and tickets.
Byju’s contesting order
While Byju’s claims it is aiming for an amicable settlement with the BCCI, the company also plans to challenge the NCLT order in the appellate tribunal. A spokesperson for Byju’s stated their confidence in reaching a solution despite the current situation.
Byju’s Financial Troubles
Byju’s downfall coincides with the reopening of schools post-pandemic, impacting its core business. The company has faced a series of financial issues, including missing reporting deadlines and falling short of revenue targets. Recent months have also seen internal conflicts between investors and founders, leading to legal battles and job cuts.
NCLT order and next steps
The NCLT order has frozen Byju’s assets and appointed an interim resolution professional to oversee the insolvency proceedings. The tribunal has also invited creditors, including the BCCI, to file claims against Byju’s.
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Uncertain Future
With Byju’s facing insolvency, it remains unclear whether the BCCI will recover the full amount owed. The ongoing legal battle between Byju’s and the BCCI will likely determine the final outcome of this sponsorship dispute.
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