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The Supreme Court on Friday agreed to hear on Monday an appeal by US-based Glas Trust Co against Aakash Educational Services' move to conduct a rights issue that would reduce Byju's parent Think & Learn's stake from 25.75% to below 5%.Glas Trust, a US-based lender to Think & Learn and a member of its committee of creditors (CoC), has moved the top court, challenging a National Company Law Appellate Tribunal's order that refused to stay Aakash's EGM on October 29. The EGM approved a proposal to raise its authorised share capital, a key step before conducting a rights issue.The lender argued that an increase in share capital would violate an earlier NCLT order in November 2024, directing that no consequential action be taken on Aakash's October 2024 board resolutions. Besides, a status quo NCLT order in March barred dilution of Think & Learn's shareholding, it said. Since Think & Learn is undergoing corporate insolvency resolution initiated by the Board of Control for Cricket in India, any action diminishing its asset value, including its stake in Aakash, must be restrained under Section 60(5) of the Insolvency and Bankruptcy Code, Glas Trust argued.The US lender, which holds 99.41% voting share in the CoC of the bankrupt edtech firm, alleged that Aakash's rights issue was an orchestrated effort to bleed Byju's value and circumvent the status quo order.Live EventsGlas Trust is a security trustee of Byju's.The Chennai bench of NCLAT on Tuesday rejected Glas Trust's plea that sought stay on Aakash's EGM. The Bengaluru bench of NCLT, too, had earlier in October refused to stay the EGM.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onGlas TrustAakash Educational ServicesThink & LearnByju'sNCLTNCLATcorporate insolvency resolutionrights issue (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onGlas TrustAakash Educational ServicesThink & LearnByju'sNCLTNCLATcorporate insolvency resolutionrights issue(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless
