BYJU’S has reached a settlement with Aakash Educational Services Limited (AESL) over a dispute concerning AESL’s ₹500 crore rights issue, according to inc42.com. The dispute, which was contested before the National Company Law Tribunal (NCLT) in Bengaluru, involved BYJU’S challenging the rights issue on grounds of oppression and mismanagement. The proposed rights issue threatened to dilute BYJU’S stake in Aakash from 26% to less than 5%.
The settlement was informed to the NCLT by BYJU’S senior advocate Abhinav Vasisht and AESL’s senior advocate C K Nandakumar. The dispute had escalated through various legal forums, including the NCLT, the National Company Law Appellate Tribunal (NCLAT), and the Supreme Court. This resolution follows months after BYJU’S creditors approved a proposal to settle the long-running dispute over AESL’s shareholding at the Bengaluru bench of the NCLT.
The rights issue conflict is part of broader overlapping disputes involving BYJU’S ownership, creditor recoveries, and the future of the edtech company, which once had a valuation of $22 billion. Earlier this month, BYJU’S founder Byju Raveendran proposed relinquishing his shareholding in Aakash to settle Qatar Holding’s arbitration claim exceeding $235 million. Creditors are exploring a wider settlement focused on Aakash, considered the most valuable surviving asset of BYJU’S.
BYJU’S had secured a $1.2 billion term loan B from global lenders, who are involved in the ongoing creditor negotiations. The settlement of the rights issue dispute marks a significant step in resolving the complex financial and ownership challenges facing BYJU’S and Aakash Educational Services, according to inc42.com.