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Tag: Byju Raveendran

  • Byju’s Employees Haven’t Received July Salaries Yet, CEO Explains Why | Economy News

    New Delhi: Employees at Edtech firm Think and Learn, the company behind Byju’s have not received their July salaries. According to CEO Byju Raveendran, the delay occurred because the company was temporarily unable to access its accounts due to a Supreme Court stay on a recent decision by the National Company Law Appellate Tribunal (NCLAT).

    The National Company Law Appellate Tribunal (NCLAT) on August 2 approved Byju’s settlement of Rs 158.9 crore in dues with the BCCI and dismissed the insolvency proceedings against the company. On August 14, the Supreme Court put a hold on this decision, followed by a plea from US-based creditor Glas Trust Company LLC, effectively reinstating the insolvency case against the ed-tech giant.

    In an email to employees, Byju Raveendran expressed that each legal hurdle has prolonged the company’s journey toward recovery and stated, “I want to address the matter of utmost concern to you – and to me as well. Your salary for July 2024 has not been credited yet.”

    He further added, “Our company recently faced a serious challenge that pushed us into insolvency due to a dispute with the BCCI. We settled the case and were on the brink of regaining control of our finances after the NCLAT ruled in our favour. The apex court has issued a temporary stay on the NCLAT’s decision, which means the control of the company’s accounts has not yet been restored to us.”

    He mentioned that some foreign lenders have been challenging the company in court and have appealed the NCLAT ruling to the Supreme Court.

  • Byju’s Delays March Salaries; Blames Few Foreign Investors | Companies News

    New Delhi: Embattled edtech company Byju’s has informed its employees that there will “again” be a delay in disbursement of salaries. Byju’s management in a communication to employees blamed the situation on an interim order obtained by “a few misguided foreign investors” in late February which “restricted usage of the funds raised through the successful rights issue”.

    Byju’s also sought to assure staff that it is following a parallel line of credit to ensure that employees get their salaries by April 8. “We are writing to you today with a heavy heart but with a message of hope and reassurance. We regret to inform you that there will again be a delay in the disbursement of salaries. A few misguided foreign investors in BYJU’S have obtained an interim order in late February which has restricted usage of the funds raised through the successful rights issue,” the management wrote.

    The note further said: “This irresponsible action by the four foreign investors has compelled us to temporarily hold the disbursal of salaries until the restriction is lifted.” Byju’s said it has full faith in the Indian judicial system and eagerly awaits a favourable outcome that will enable it to utilise the funds raised through the rights issue and alleviate the financial challenges it is currently facing.”

    As you know, the founders have put everything back into the company, and regardless of the court verdict, we are following a parallel line of credit to ensure that you receive your salary by 8th of April,” the management said.

    On a positive note, the management said, it has the necessary vote to increase the authorised capital for the rights issue.”It means that once the restrictions on using the raised funds are lifted, we can meet all our salary commitments immediately. As you might have read, our founder, Byju Raveendran, has once again appealed to disgruntled investors in a collaborative spirit, and we are hoping that litigating investors would have a reasonable spirit in not frustrating our daily lives any longer,” it said.

    The company said it understood the feelings of helplessness that may arise due to these circumstances, and added “we share your frustration”.

    “However, we urge you to hold onto hope and remain resilient. BYJU’S has overcome challenges recently, and we firmly believe that together, we will overcome this last hurdle. We are confident that justice will prevail and the financial constraints will be resolved soon,” the management wrote thanking employees for their patience, understanding, and continued dedication during the difficult time.

  • Byju’s EGM On Rights Issue Ends Sans Objections, Dissenting Investors Skip Meet | Companies News

    New Delhi: Embattled edtech company Byju’s on Friday held its extraordinary general meeting (EGM) called by the board of directors to raise the capital via the rights issue without any hassles.

    The EGM, called to increase Byju’s authorised share capital, met with no objection and none of the key investors who went to the National Company Law Tribunal (NCLT) against the rights issue and to oust its Co-founder CEO Byju Raveendran, were present at the EGM, sources told IANS.

    The meeting saw about 20 investor representatives in attendance, along with Think & Learn management, the parent company of Byju’s.

    Few questions regarding the postal ballot were asked and resolutions were called out while no objections were raised in the 30-minute meeting.

    According to sources, further details on the voting and culmination of the rights issue (about $250-$300 million)will be shared later by the company.

    Earlier, in a breather for the embattled edtech company NCLT on Thursday refused to stay EGM.

    According to sources, the tribunal judge was convinced by the evidence submitted and arguments made by Byju’s counsels, who made a case that the “only objective of the petitioners is to be restrictive”.

    Last month, the NCLT directed Byju’s to keep funds received from the rights issue in an escrow account till the disposal of the case.

    As funds remain stuck, Byju’s has mandated all its employees to work from home as it gives up office spaces across the country amid severe cash crunch.