OPPO Mobiles filed a petition on May 1 in the Bengaluru bench of the National Company Law Tribunal (NCLT), seeking initiation of insolvency proceedings against troubled edtech major Byju’s. OPPO is the latest in the growing list of entities, who dragged Byju’s to the NCLT
In April 2021, Byju’s acquired Aakash in a deal that had a 70 per cent cash component and 30 per cent equity component. The merger was planned as a part of the cash-and-stock deal, when Byju’s had acquired the brick-and-mortar test prep company for $940 million.
Byju's crisis: An arbitrator, appointed under Singapore International Arbitration Centre rules, has ordered Byju’s not to dispose of 4 million shares of Aakash, which amounted to a 6 per cent stake as per the loan agreement.
The company had held back February salaries mid-March. It later paid a part of the dues. Byju's and its investors are involved in a dispute over the company's $200 million rights issue.