GLAS Trust, the US lender of embattled edtech major Byju’s, said that interim resolution professional (IRP) Pankaj Srivastava has removed them from the committee of creditors (CoC).
An appointee of the National Company Law Tribunal (NCLT), Srivastava notified GLAS Trust about its removal from the CoC via an email on September 3, which included a letter dated September 1, according to the statement by the US-based lender.
“Pankaj Srivastava’s actions are unprecedented and entirely illegitimate as no interim resolution professional in the history of the Insolvency and Bankruptcy Code of India has ever attempted to unlawfully strip financial creditors of claims of this magnitude amounting to more than US$1.35 billion without any legitimate reason and in doing so securing his appointment as the permanent resolution professional,” the statement noted.
GLAS Trust has petitioned the Bengaluru bench of NCLT to have Shailendra Ajmera appointed as the new IRP, replacing Srivastava. In an application to the NCLT filed on August 30, GLAS Trust had accused Srivastava of not adhering to the Insolvency and Bankruptcy Code (IBC), 2016, which mandates the CoC to hold its first meeting within seven days of its formation.
The lenders noted that prior to August 27, Srivastava had repeatedly confirmed in writing and verbally (including in court filings) that GLAS Trust’s $1.35 billion claim had been verified and admitted, and that it was undoubtedly a member of the CoC.
However, on August 27, Srivastava abruptly cut off all communication with the lenders and ignored efforts by advisors of GLAS Trust to reach him.
Srivastava resumed his role as interim resolution professional for Think and Learn Pvt Ltd (TLPL), the parent company of Byju’s, on August 14 and established the CoC on August 21.
“Pankaj’s eleventh-hour pretextual arguments to the contrary should be seen for what they are: a clear intent to fraudulently disenfranchise GLAS Trust and the lenders from the CoC,” the statement read.
The insolvency proceedings began on July 16 when the Bengaluru NCLT bench admitted a plea filed by the Board of Control for Cricket in India (BCCI) for insolvency proceedings against TLPL