The name Biju is not an unfamiliar one to someone who loves knowledge and learning. And yet, the platform has recently faced a case of bankruptcy, a situation that has forced it to come under a US court appointed agent who sadly took over the company.
While we shake our heads at the situation, the decision only seems fair, what with the company’s recent debt of $1.2 billion. The situation would be different if Byju’s Alpa Inc had enough money to fight off its parent company.
But that is not what Chief EXecutive Officer Timothy Paul showed at the court papers that he filed. Chapter 11 petition clearly states that for lenders to come forward and fund the company, they must first get the company to file for bankruptcy.
Only then, can these lenders come forward to load the company with the money that it can use to win over their parent company.
Yet, the company has a totally different claim, accusing a hedge fund in Florida of its involvement with the parent company, in hiding cash worth $150 million, which should have gone to the creditors of the company.
From this, it is only fair that the company plans to sue the small hedge company. Yet, amidst all the chaos, the parent company continues to run the show smoothly all through the country and overseas, despite the threats they receive from creditors.
What makes matters worse is its involvement with the US courts, which could cost the company tens of millions of dollars in the case of complexity. This may be impossible to meet with Byju Alpha’s liabilities which far exceed its limited assets of just $500 million.
One way it seeks to alleviate its financial hurdles is by offering a discount of more than 90 percent for funds that it has been trying to raise.
And we cannot help feeling sad for the sorry state that the company that has taught so many Indians today now finds itself in, and we hope that it climbs off this pile of chaos soon, to become the successful platform that it once was, and is always meant to be.
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