NEW DELHI, Reuters U.S.based Glas Trust is not part of a key panel overseeing the insolvency proceedings of Indian educationtechnology giant Byju39;s, and will need to substantiate the 1 billion claim of lenders it represents, according to documents and three sources.

Byju39;s was once a darling of global investors and valued at 22 billion in 2022, but is now facing insolvency due to its dispute with U.S. lenders. The company became popular by offering online training courses during the COVID19 pandemic.

Its insolvency officer, Pankaj Srivastava, told Glas in a Sept. 1 letter that a majority of the lenders it was representing have no business rights left as part of agreements with Byju39;s, and can39;t stake a claim.

As a result, in a setback for U.S. lenders, the insolvency panel has been reconstituted without Glas Trust, according to three sources with direct knowledge of the matter, who spoke on condition of anonymity.

Srivastava has asked Glas to clarify its position and provide supportive documents, the Sept. 1 letter, which is not public but was reviewed by Reuters, showed.

U.S. term loan lenders in a joint statement early on Wednesday said the decision to exclude Glas Trust from the insolvency panel is completely wrong in law and in fact.

Srivastava did not respond to a request for comment.

Byju39;s, started in 2011, has suffered numerous setbacks in recent months, from boardroom exits and criticism over delayed financial disclosures to an auditor…