OYO breathes easy as NCLAT orders a stay on insolvency proceedings against its subsidiary company
- A Gurugram-based creditor had initiated insolvency proceedings and The National Company Law Tribunal had admitted the petition against OYO’s subsidiary
Oyo Hotels and HomesPvt Ltd on April 7.
- The National Company Law Appellate Tribunal (NCLAT) today stayed the proceedings against OYO’s subsidiary.
- As initially it was misreported by a few media platforms as
OYOfiling for bankruptcy, Agarwal had taken to Twitter to squash the rumours.
AdvertisementAs OYO battled with reports of bankruptcy, which it said was inaccurate, and received an outpouring of support from India’s startup ecosystem, the Ritesh Agarwal-led company heaved a sigh of relief today.
The National Company Law Appellate Tribunal (NCLAT) today stayed the proceedings against OYO’s subsidiary.
A Gurugram-based creditor had initiated insolvency proceedings against the $9 billion company and The National Company Law Tribunal had admitted the petition against OYO’s subsidiary Oyo Hotels and Homes Pvt Ltd on April 7. However, OYO had challenged the same.
“The NCLAT provided a stay for the formation of COC (committee of creditors) in IBC (insolvency and bankruptcy code) proceedings against OHHPL, subsidiary of OYO. OHHPL appealed the order in front of NCLAT and explained that a demand draft of ₹16 lakh was issued to the claimant under protest and the claimant has willingly banked the DD,” said an OYO spokesperson.
As initially it was misreported as OYO filing for bankruptcy, Agarwal had taken to Twitter to squash the rumours and said that the matter was simply a ‘contractual dispute’ for an amount of ₹16 lakh.
I am so grateful to everyone for their support on social media since yesterday. Thank you for discouraging misleadi… https://t.co/xI0AMmG2tu— Ritesh Agarwal (@riteshagar) 1617872563000
OYO says an angry creditor has dragged the $9 billion startup to court over a ₹16 lakh dispute
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