Kerala HC Summons BYJU’S RP, Glas Trust & EY India On Dec 5

Core Viewpoint - BYJU'S is facing significant legal and financial challenges, including asset sales at steep discounts and ongoing bankruptcy proceedings, which have raised concerns about its financial stability and compliance with legal obligations [1][4][5]. Group 1: Legal Proceedings - The Kerala High Court (HC) has summoned key individuals from BYJU'S and its lenders regarding the sale of assets Epic! and Tynker, despite a prior restraining order [1][2]. - A defamation lawsuit of $2.5 billion is planned by BYJU'S founder against Glas Trust and the resolution professional (RP) [1][6]. - The Supreme Court dismissed Raveendran's appeal related to the approval process for withdrawing insolvency proceedings, indicating ongoing legal hurdles for BYJU'S [6]. Group 2: Asset Sales - Epic! and Tynker were sold at significant discounts: Tynker for $2.2 million, down 99% from the $200 million paid in 2021, and Epic! for $95 million, an 81% reduction from the $500 million paid [4]. - The sales were part of BYJU'S bankruptcy process in the US, linked to an unpaid term loan of $1.2 billion [4][7]. Group 3: Financial Challenges - BYJU'S is struggling with mounting losses and a significant decline in revenues, leading to its inability to repay loans [7]. - Creditors have alleged that BYJU'S violated loan terms, with $533 million of the total debt reportedly moved out of the US illegitimately [8].