NCLT stays BYJU’S Form G bidding process as founders contest creditor claims

The NCLT Bengaluru has paused BYJU’S Form G bidding and resolution-applicant shortlisting until August 31, 2026. The stay follows founders’ challenge to GLAS Trust’s ₹11,433 crore admitted claim and creditor voting control, extending uncertainty around the edtech company’s insolvency resolution.

— Source publishedFri, 24 Jul, 2026, 13:10 IST·First seen Fri, 24 Jul, 2026, 13:17 IST·Source The Hindu BusinessLine

What happened

BYJU'S · NCLT Bengaluru stayed BYJU’S Form G bidding process and resolution-applicant shortlisting until August 31 while founders challenge GLAS Trust’s

Key facts

  • $1.2 billion term loan
  • ₹11,433 crore admitted claim
  • more than 99% creditor voting power
  • 124 lenders
  • 46 lenders allegedly unsigned
  • 78 lender signatures
  • 735th day of CIRP
  • 330-day statutory outer limit
  • ₹158 crore BCCI claim

Why this matters

Potential acquirers must wait for the NCLT process to restart, while using the pause to reassess BYJU’S assets, liabilities and the risks of a disputed creditor structure.

What to watch

  • NCLT's detailed order and any interim findings on GLAS Trust's standing, admitted claim amount and voting share.
  • Whether the August 31, 2026 stay is lifted, extended or followed by a revised Form G process.
  • Appeals to NCLAT or the Supreme Court by founders, lenders or other creditors.
  • Changes in BYJU'S operating continuity, including employee attrition, vendor service disruption, subscriber retention and asset preservation.
  • Evidence of binding bidder interest, bidder withdrawals or a shift from whole-company bids to asset-specific offers.
  • Any negotiated settlement between founders and financial creditors that changes control or funding arrangements.
  • GLAS Trust and the resolution professional will defend claim admission, creditor classification and CoC voting rights before NCLT.
  • BYJU'S founders are likely to seek detailed scrutiny of loan documentation, claim calculation, security enforcement and the lender's standing.
  • Potential bidders will pause diligence, seek revised timelines and demand stronger protections against litigation risk.
  • The resolution professional may focus on preserving key operating assets, customer renewals, technology infrastructure and staff while the sale process is frozen.
  • Creditors may explore settlement, restructuring or founder-backed financing options if litigation threatens to materially impair recoveries.