New Delhi: Board of Control for Cricket in India (bcci) has dragged down the troubled edtech company byju’s To the National Company Law Tribunal (NCLT) for non-payment of Rs 160 crore sponsorship Money after expiry of the contract.
While the payment has been outstanding for more than six months, Byju’s is looking to pay this amount. A company spokesperson said, “We are in discussions with the BCCI to resolve this matter and we hope to achieve this soon.”
The dispute relates to the sponsorship contract, which expired in March 2022. Till this period all payments were made by Byju’s. At this time, the BCCI had asked the company, which was once the most valuable startup, to continue until it finds a new sponsor. Amid the funding winter, Byju wanted to exit but BCCI convinced him to stay for some more time.
In June, Byju’s had extended its jersey sponsorship deal with the board until November 2023 for an estimated $35 million, an agency report said. While Byju’s wanted to end its agreement with BCCI in December, the board wanted it to be extended at least till March 2023 so that a new sponsor could come in from the new financial year.
Sources said that the dispute is related to the payment of Rs 160 crore for this period. With employees’ dues paid, insolvency experts suggest, B.C.C.I. Amount due It will receive lower priority because it is an operational lender. Nevertheless, Byju is understood to have informed the BCCI that he wants to resolve the matter amicably.
The company has been in financial trouble for the past few months due to several high-profile acquisitions and lack of new funding. It wants to exit some of the companies it acquired. It has laid off more than 5,000 employees from October 2022 to cut costs.
After a delay of over a year, its financial results for FY22 revealed EBITDA loss of Rs 2,253 crore
While the payment has been outstanding for more than six months, Byju’s is looking to pay this amount. A company spokesperson said, “We are in discussions with the BCCI to resolve this matter and we hope to achieve this soon.”
The dispute relates to the sponsorship contract, which expired in March 2022. Till this period all payments were made by Byju’s. At this time, the BCCI had asked the company, which was once the most valuable startup, to continue until it finds a new sponsor. Amid the funding winter, Byju wanted to exit but BCCI convinced him to stay for some more time.
In June, Byju’s had extended its jersey sponsorship deal with the board until November 2023 for an estimated $35 million, an agency report said. While Byju’s wanted to end its agreement with BCCI in December, the board wanted it to be extended at least till March 2023 so that a new sponsor could come in from the new financial year.
Sources said that the dispute is related to the payment of Rs 160 crore for this period. With employees’ dues paid, insolvency experts suggest, B.C.C.I. Amount due It will receive lower priority because it is an operational lender. Nevertheless, Byju is understood to have informed the BCCI that he wants to resolve the matter amicably.
The company has been in financial trouble for the past few months due to several high-profile acquisitions and lack of new funding. It wants to exit some of the companies it acquired. It has laid off more than 5,000 employees from October 2022 to cut costs.
After a delay of over a year, its financial results for FY22 revealed EBITDA loss of Rs 2,253 crore
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