 "Edtech major Byju's asks for 48 hrs to decide on selling or pledging shares")
Beleaguered edtech firm Byju’s on Wednesday appeared before the National Company Law Tribunal (NCLT) and requested 48 hours to determine whether it should undertake not to pledge, sell, or transfer its assets amidst a dispute with investors.
Earlier this year, US-based lenders to Byju’s approached the NCLT Bench in Bengaluru to start corporate insolvency proceedings against the edtech company. The ad hoc group of lenders (the Ad Hoc Group), which lent $1.2 billion as term loans (Term Loans) to Byju’s, said GLAS Trust Company LLC (as administrative agent and collateral agent of the Term Loans) had filed a petition against Think & Learn (doing business as Byju’s) before the Bench.
On May 29, the US-based lenders of Byju's urged the NCLT to restrain it from pledging, selling, or transferring its shares.
Byju’s is now expected to inform NCLT about its decision to give the undertaking, and the case will be heard on July 9.
The tribunal had designated July 3 as ‘Byju Day’ as nearly 10 petitions were expected to be heard that day against the edtech firm.
In a separate development, NCLT at Bengaluru on July 3 reserved insolvency pleas filed by telemarketing company Surfer and mobile phone maker Oppo against Byju's for judgment.
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Last week, Oppo had told the National Company Law Tribunal (NCLT) Bengaluru that Byju’s has not paid them Rs 13 crore for pre-installing their apps on their phones. Oppo had said that Byju’s had admitted to owing them money, and this was a clear case for admitting the edtech firm to insolvency to recover its dues.
Surfer Technologies had argued that Byju’s had incurred a debt of Rs 2.3 crore. The firm also contended that it had sent a notice to the edtech company in this regard in December 2023. NCLT had earlier levied a cost of Rs 20,000 on Byju’s for the delay in filing its reply to a petition by Surfer Technologies.