BYJU’S Insolvency Saga: Shailendra Ajmera Appointed New IRP
In a recent development, the Bengaluru bench of the National Company Law Tribunal (NCLT) has appointed Shailendra Ajmera as the new insolvency resolution professional (IRP) of troubled edtech startup BYJU’S. This move comes as a significant step forward in the insolvency saga of the company, which has been grappling with financial woes for quite some time now.
The order appointing Ajmera as the new IRP was passed by the NCLT bench, which also noted that the members of BYJU’s committee of creditors had passed a resolution to replace the outgoing IRP, Srivastava, with Ajmera. A staggering 99.82% of the members voted in favour of Ajmera, making it a near-unanimous decision.
As the new IRP, Ajmera will now be responsible for overseeing the insolvency resolution process of BYJU’S. This includes coordinating with stakeholders, creditors, and other relevant parties to identify potential buyers or investors who can revive the company’s fortunes. The IRP will also be responsible for ensuring that the company’s assets are utilized in a manner that maximizes returns for creditors.
The appointment of Ajmera as the new IRP comes at a time when BYJU’S is facing significant financial challenges. The company, which was once valued at over $10 billion, has been struggling to manage its debt and cash flow issues. In 2020, BYJU’S had filed for insolvency proceedings under the Insolvency and Bankruptcy Code (IBC), citing financial difficulties and unsustainable debt.
Since then, the company has been working to restructure its debt and find a way to revitalize its business. However, the process has been slow and challenging, with multiple IRPs and resolution plans being proposed and rejected over the past year.
The appointment of Ajmera as the new IRP may bring a fresh perspective to the insolvency resolution process. With his experience and expertise in handling complex insolvency cases, Ajmera may be able to identify new opportunities and strategies for BYJU’S to emerge from its financial difficulties.
Ajmera’s appointment is also significant because it marks a departure from the previous IRP, Srivastava, who had been handling the case since 2020. Srivastava had faced criticism from creditors and stakeholders for his handling of the insolvency process, which had been slow and ineffective.
In contrast, Ajmera has been praised for his ability to work with stakeholders and creditors to find solutions that benefit all parties involved. As the new IRP, he will have the opportunity to build on his reputation and work towards finding a sustainable solution for BYJU’S.
The appointment of Ajmera as the new IRP may also have implications for BYJU’S employees and customers. The company has been under pressure to reduce costs and streamline its operations, and the new IRP may be able to identify ways to achieve this while minimizing the impact on employees and customers.
Ultimately, the appointment of Shailendra Ajmera as the new IRP of BYJU’S is a significant development in the company’s insolvency saga. With his expertise and experience, Ajmera may be able to find a way to revive the company’s fortunes and emerge from its financial difficulties.
Source:
https://inc42.com/buzz/byjus-insolvency-saga-shailendra-ajmera-appointed-new-irp/
