Byju Raveendran stated in an email to staff members that every legal roadblock has made the company’s recovery process take longer.
Workers at Byju’s parent company, Edtech startup Think and Learn, have not received their July paychecks. CEO Byju Raveendran explained that the reason for the delay was that the Supreme Court’s stay on a recent ruling by the National Company Law Appellate Tribunal (NCLAT) prevented the company from accessing its accounts for a short period of time.
On August 2, the National Company Law Appellate Tribunal (NCLAT) dismissed the company’s insolvency proceedings and accepted Byju’s settlement of Rs 158.9 crore in outstanding debts with the BCCI. Following a plea from US-based creditor Glas Trust Company LLC, the Supreme Court effectively reinstated the insolvency case against the massive e-tech company on August 14, putting a hold on this decision.
In an email to staff members, Byju Raveendran wrote, “I want to address the matter of utmost concern to you – and to me as well. Each legal hurdle has prolonged the company’s journey toward recovery.” Your July 2024 salary has not yet been credited.
“Our company faced a serious challenge that pushed us into bankruptcy due to a dispute with the BCCI,” he continued. After the NCLAT found in our favor, we were close to settling the case and getting our money back. We still do not have control of the company’s accounts because the NCLAT’s ruling has been temporarily stayed by the supreme court.”
He said that a few foreign lenders had been suing the company and appealing the NCLAT decision all the way to the Supreme Court.
