Byju’s Bankruptcy Case: Supreme Court's Stay Raises Questions on Corporate Debt Priorities
The Indian Supreme Court’s interim stay on the bankruptcy proceedings against Byju’s has brought a momentary pause in one of the most high-profile financial battles in India’s corporate landscape. With the education giant facing massive debt, the legal entanglement over its dealings with the Board of Control for Cricket in India (BCCI) only complicates matters. At the heart of the issue lies Byju’s payment to BCCI, amounting to ₹158 crore, linked to the Indian cricket team’s jersey sponsorship. The decision by Byju’s to settle this debt, while neglecting other creditors, raises questions about the company’s financial priorities. Glas Trust, a major US-based lender, has strongly objected to this move, arguing that the funds used to repay BCCI were effectively theirs. This has sparked concerns over whether Byju’s is favoring some creditors while disregarding others, particularly as the company’s overall debt hovers around ₹15,000 crore. The Supreme Court’s scrutiny of the National C...