In a court filing reviewed by Reuters, Byju's CEO Byju Raveendran warned that insolvency proceedings against the ed-tech giant could lead to thousands of job losses and a complete shutdown of its services. Once valued at $22 billion, Byju's is grappling with severe financial and operational challenges.

The Indian tribunal's decision to trigger insolvency proceedings came after a complaint by the country's cricket board over an unpaid $19 million sponsorship deal. As a result, Byju's assets have been frozen and its board suspended.

The filing, which spans 452 pages and was submitted to the High Court of Karnataka by Raveendran's legal team, outlines the potential devastating impact of the insolvency process on the company's operations. Raveendran argued that the insolvency could lead to vendors halting critical services, causing a complete shutdown of Byju's online platforms.

The court is scheduled to hear the case on Monday. The filing, not yet made public, reveals that Byju's is facing its most significant crisis following a series of setbacks, including job cuts, a collapse in its valuation, and disputes with investors over alleged corporate governance issues. Byju's has denied any wrongdoing.

Byju's, which operates in over 21 countries and became popular during the COVID-19 pandemic for its online courses and in-person coaching, currently employs around 27,000 people, including 16,000 teachers. The filing indicates that employees may be forced to leave the company if the insolvency process continues. Raveendran has expressed willingness to settle the outstanding dues within 90 days.