Amid a dispute with some investors, edtech platform Byju’s has asked for 48 hours from the National Company Law Tribunal, NCLT, to decide whether it can agree not to pledge, sell, or transfer its assets, as requested by the bankruptcy court, amidst a disagreement with certain investors. This is as per a report by Moneycontrol.
The NCLT will hear the case on June 9 after the edtech platform informs the court about its decision to give the undertakings. Senior counsel KG Raghavan of the edtech firm said, "I don't know what my client (Byju's) wants to do, but I will obtain instructions from them on whether such an undertaking can be given."
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The statement has been given by the senior counsel with regards to an application that was filed by the US-based lenders of the edtech firm, adds the reprt. The US lenders have filed motions with the NCLT to stop the firm from selling, transferring, or pledging its shares.
While taking the court through various documents and appearing for the lenders, senior advocate Uday Holla said that the edtech firm did not imbibe confidence in the lenders.
As per the Mint, the lenders had said, "Since Byju’s began to default on its term loan obligations shortly after we provided Byju’s Alpha (the US subsidiary of Byju’s) with financing in 2021, we have made every effort possible to work productively and collaboratively to help Byju’s cure its multiple defaults."
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The lenders also reportedly added, "“However, it is clear that Byju’s management has no intention or ability to honor its obligations. Indeed, Byju’s founders, who also serve as the three directors of the overall enterprise—Byju Raveendran, Riju Ravindran, and Divya Gokulnath—unlawfully diverted $533 million in loan proceeds, the whereabouts of which are still unknown."
Close to ten petitions are pending against the edtech firm at the Bengaluru bench of the NCLT. The edtech firm has been grappling with lots of crises that involve bankruptcy cases, acute cash crunches, and more.
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