BYJU'S Inches Closer to Resolving the Aakash Dispute After Creditors Give Their Approval

BYJU'S Inches Closer to Resolving the Aakash Dispute After Creditors Give Their ApprovalThe years-long battle over Aakash Educational Services' ownership may finally be nearing its end. Creditors of Think & Learn, the parent company behind troubled edtech giant BYJU'S, have signed off on a proposal to settle the dispute over Aakash's shareholding a case that has dragged through courtrooms in India, the US, and Singapore for more than two years.

Creditors Give the Green Light

The update came during a hearing before the Bengaluru bench of the National Company Law Tribunal (NCLT), where Think & Learn's counsel, Ichchha Kalash, confirmed that the company's committee of creditors had approved the settlement, according to a report by ET.

Kalash told the tribunal that the settlement documents have already been passed on to Aakash and its majority shareholder, Manipal Education and Medical Group, and that both sides are now waiting on Manipal's final response.

Describing the two parties as being "at the last mile" of the process, Kalash requested the next hearing be scheduled for July 22, expressing confidence that a resolution was close at hand. The NCLT, however, pushed the matter to August 18 instead.

Lenders Eyeing a ~30% Stake in Aakash

This latest development follows reports that emerged just days earlier revealing that BYJU'S global Term Loan B (TLB) lenders are in advanced discussions to acquire roughly a 30% stake in Aakash, at a valuation of around $2 billion.

As part of the broader settlement being discussed, the lenders have reportedly offered to drop all legal proceedings against BYJU'S founder Byju Raveendran in exchange for a stake in Aakash an arrangement that would effectively close out one of Indian edtech's messiest legal sagas.

A Parallel Legal Setback for Raveendran in Singapore

The settlement talks are unfolding against the backdrop of separate legal trouble for Raveendran personally. Earlier this week, Bloomberg reported that the Singapore High Court rejected his request to extend a stay on a six-month jail sentence tied to a contempt finding meaning the order would take effect should he return to Singapore.

Raveendran was originally sentenced in May after the court found him in contempt for repeatedly failing to comply with orders requiring him to disclose his assets, a requirement dating back to April 2024. That sentence was later temporarily paused, along with related surrender provisions.

BYJU'S has since clarified that this week's Singapore High Court hearing was narrowly focused on whether to extend the stay on the six-month civil contempt sentence, and did not represent a fresh ruling. The company noted that the main appeal is still pending before Singapore's Court of Appeal.

J. Michael McNutt, senior litigation advisor to Raveendran, pushed back on any suggestion that this marked a new development: "The stay was declined by the same court that made the underlying contempt finding, and that finding is precisely what is now being challenged before the Court of Appeal. The contempt order itself remains contested."

How We Got Here

The roots of the dispute trace back to 2023, when GLAS Trust representing BYJU'S Term Loan B lenders accused Raveendran of misappropriating funds while attempting to recover more than $1 billion the group had loaned to the edtech company back in 2021. BYJU'S and Raveendran have consistently denied the allegations, but the fight has since spilled across multiple jurisdictions.

At the heart of it all sits Aakash Educational Services, the test-prep company BYJU'S acquired for roughly $1 billion in 2021. A subsequent ₹500 crore rights issue, combined with debt-to-equity conversions, diluted Think & Learn's stake in Aakash significantly handing majority control to Manipal Education and Medical Group in the process.

What's Next

The settlement currently on the table is expected to determine exactly how Aakash's value gets divided among the lenders, Manipal, and entities linked to Raveendran. With creditors now on board and both sides describing themselves as close to a deal, the next hearing on August 18 could bring one of Indian edtech's longest-running legal battles closer to a final chapter.