Edtech firm Byju’s insolvency resolution professional has removed the company’s $1.2-billion Term Loan B lenders’ representative Glas Trust from the committee of creditors, according to sources.

The lenders have alleged that the move is unlawful and Byju’s insolvency resolution professional (IRP) has been secretly plotting against the $1.35-billion claim of US lenders against the beleaguered ed-tech firm.

The Supreme Court had denied relief to Byju’s on insolvency proceedings based on an appeal filed by Glas Trust.

The apex court had on August 14 stayed the verdict of the NCLAT, setting aside the insolvency proceedings against the ed-tech major and approving its ₹158.9-crore dues settlement with the Indian cricket board.

“In a major development in the ongoing insolvency resolution process for Byju’s, Glas Trust Inc, purportedly representing several US-based lenders, has been ousted from the Committee of Creditors (CoC) by the Insolvency Resolution Professional (IRP), Pankaj Srivastava,” a source said.

When contacted, a spokesperson for the steering committee of the term loan lenders said IRP Pankaj Srivastava has been secretly plotting to reject the claims of the term loan lender

“Pankaj Srivastava (Pankaj)’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 $1.35 billion without any legitimate reason and in doing so securing his appointment as the permanent resolution professional,” the lenders’ spokesperson said.

The spokesperson said that prior to August 2, the IRP had repeatedly confirmed in writing and verbally (including in court filings) that the claim filed by Glas Trust on behalf of the lenders in the amount of about $1.35 billion had been verified and admitted and that Glas Trust was undoubtedly a member of the CoC.

The lenders’ spokesperson alleged that the IRP abruptly cut off all communication to the lenders of Glas Trust on August 27 and since then, he also ignored all efforts by advisors of Glas Trust to reach him to check-in on the status of the insolvency process.

According to the spokesperson, IRP Pankaj informed Glas and other CoC members on August 30 that he will reschedule the CoC meeting to September 3 at 7pm but held a meeting at 10 am.

PTI