Akshata Sharma
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Embattled edtech startup BYJU'S has requested for 48 hours from the National Company Law Tribunal to decide whether it should undertake not to pledge, sell or transfer its assets amid a dispute with investors
This comes a day after the Karnataka HC set aside the NCLT's interim order, passed last month, which had restrained BYJU'S from undertaking a second rights issue.
The story traces its origins to February 2024, when reports first surfaced indicating that the edtech major was considering a rights issue at a significantly reduced valuation of 99%.
On May 29, lenders filed an application alleging that even after they filed the plea in February, promoter Raveendran Byju borrowed Rs 350 crore in exchange for some of his shares. Since Byju was based in Dubai, they would be left with no one to prosecute and recover the money from if he continued borrowing money in exchange for shares, they said.
Noting that close to 10 insolvency petitions were pending against Byju's in the Bengaluru bench of NCLT, the lenders said the cases spoke of the company's financial condition.
According to Holla, who appeared for Glas Trust, a US-based non-bank loan agency, Byju’s parent Think and Learn stood guarantee to a $1.2-billion (Rs 8,000 crore) loan.
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