The National Company Law Tribunal (NCLT) has directed Byju's to place the proceeds from its $200 million rights issue into an escrow account and consider extending the closure date amid ongoing legal proceedings. This development comes as the edtech giant faces a legal challenge from investors seeking to halt the fundraising effort, citing concerns of mismanagement. Despite these challenges, CEO Byju Raveendran has informed that the rights issue is fully subscribed, although key investors are unlikely to participate. Concurrently, Byju's is grappling with financial difficulties, as Raveendran disclosed to employees that the company is unable to process salaries due to the dispute with investors, which has resulted in the rights issue funds being locked in a separate account. Additionally, Byju's US lenders have invoked the parent company's guarantee in insolvency proceedings, further complicating the firm's financial situation. Amidst these troubles, shareholders have voted to oust Raveendran as CEO of Byju's, once India's most valuable startup. The NCLT has given Byju's three days to file written submissions and will seek the views of the Ministry of Corporate Affairs and Registrar of Companies on the petition. Furthermore, Macquarie has slashed Byju’s valuation by 98%.
More trouble for Byju’s? Founder says unable to pay salaries to employees due to THIS reason https://t.co/RBK7AfD14C
Byju's unable to pay salaries as funds locked: Founder Raveendran https://t.co/AfKzgfhp3Y
India's Byju's can't access rights issue funds to pay staff https://t.co/7bEJQkzRDx https://t.co/L1WUKuPAaz
Byju's unable to pay salaries as funds ocked: Founder Raveendran https://t.co/AfKzgfgReq
Macquarie slashes Byju’s valuation by 98% after Julius Baer protest Macquarie Capital is writing down nearly its entire investment in Byju’s, weeks after Swiss bank Julius Baer Group accused it of charging fees based on an outsized and outdated valuation. https://t.co/O21wRC8us2
Unable to process salaries because of investor dispute: Byju Raveendran to staff In an internal memo, Raveendran blamed a select few investors, and added that the amount raised through the rights issue is locked in a separate account. https://t.co/4xYeenHmod
Byju's unable to pay salaries due to dispute with investors, says founder Raveendran https://t.co/wEpiQIXW5m via @moneycontrolcom
#Byju's unable to pay salaries amid dispute with investors, says founder Raveendran Byju Raveendran has expressed concern over the company's current financial situation, stating that they are unable to pay salaries due to a dispute with investors. https://t.co/tq5yHYCKzJ
Few investors 'stooped to heartless level', ensuring we are unable to utilise raised funds to pay salaries: Byju Raveendran to staff
Founder Raveendran says Byju's unable to pay salaries as rights issue funds locked in separate a/c amid dispute with investors
Shareholders of Byju’s, the edtech firm that was once India’s most valuable startup, did what once would have been unthinkable: They voted to oust founder and one-time billionaire Byju Raveendran as CEO. https://t.co/pwwXdMfN45
Sources Say | NCLT asked Byju’s to consider extending rights issue of shares These are the details on funds, next hearing, interim order and more👇 #ByjuRaveendran #Byjus https://t.co/EagL3CCawu
NCLT asks Byju's to keep proceeds of rights issue in escrow account, extend closure date By @Unibrowverse and @thyagarajan_law https://t.co/ePq3NxdVAy via @moneycontrolcom
🚨 JUST IN NCLT order Byju's asked to keep proceeds of rights issue in escrow, consider extending closure date of rights issue Via @thyagarajan_law
Byju’s US lenders invoke parent company's guarantee in insolvency proceedings The National Company Law Tribunal told Byju’s to respond to two separate insolvency petitions filed against the troubled edtech firm by US lenders and BCCI. https://t.co/yMrk1uxMJA
Byju’s US lenders invokes parent company's guarantee in insolvency proceedings The National Company Law Tribunal told Byju’s to respond to two separate insolvency petitions filed against the firm by US lenders and BCCI. https://t.co/yMrk1uxMJA
#Byju's $200M Rights Issue closes today amid ongoing legal proceedings. NCLT reserves order on investors' plea seeking to halt fundraising. Key investors unlikely to participate, even as CEO Byju Raveendran claims issue is fully subscribed in a recent letter. @_ritusingh reports…
The National Company Law Tribunal (NCLT) reserved its judgement on the plea filed by a few of Byju’s investors seeking the court’s intervention to declare the firm’s rights issue as void and the founders as unfit to run the company Read more at: https://t.co/d5JPtO7Z3i https://t.co/w5SHxwOQm0
NCLT reserves orders on Byju’s rights issue; gives three days to file written submissions The tribunal will also seek the views of the Ministry of Corporate Affairs and Registrar of Companies on petition, NCLT’s Bengaluru bench led by judicial member K Biswal said.
🚨This essentially means Byju's can go ahead with its rights issue, which closes tomorrow NCLT reserves judgement on oppression and mismanagement plea against Byju's filed by investors By @thyagarajan_law and @Unibrowverse https://t.co/9OHDtEQ4n3 via @moneycontrolcom
#BreakingNews 🚨 NCLT has reserved its order on the interim plea by four investors seeking orders against Byju's, alleging oppression and mismanagement #NCLT #Byjus | @BYJUS https://t.co/Fv6Zar0FkI
🚨 BREAKING: NCLT has reserved judgement on interim orders in the oppression and mismanagement plea filed by four investors against edtech company Byju's. Investors had sought for a stay of rights issue @thyagarajan_law @Unibrowverse
JUST IN | NCLT reserves order on investors' plea against Byju's rights issue: Agencies @BYJUS https://t.co/2x8AUF9afx
NCLT Bengaluru reserves order on interim plea by Investors. NCLT issues notice to Think & Learn, Byju Raveendran, ROC, MCA, seeks reply to plea on mismanagement @AshmitTejKumar @_ritusingh #Byjus @CNBCTV18Live @CNBCTV18News