In yet another update at BYJU’S, the troubled edtech giant’s US-based creditors have requested that the National Company Law Tribunal (NCLT) prevent the company from pledging, selling, or transferring shares.
According to Moneycontrol, the lenders informed the tribunal during a hearing on Wednesday (May 29) that BYJU’SBYJU’S Datalabs_in-article-icon was borrowing more money and selling off its shares in exchange. This, they claimed, was “causing grave prejudice” to creditors.
It is worth noting that the edtech major’s US-based lenders have filed an insolvency petition with the NCLT through Glas Trust Company, a US-based non-bank loan agency. The developments occurred during the hearing for the same plea.
According to the report, the company’s founder and CEO, Byju Raveendran, borrowed INR 350 crore in exchange for some of his shares, despite creditors filing an insolvency petition in February of this year.
The lender reportedly argued that because Byju was based in Dubai, they would have no one to prosecute and recover the money from if he continued to borrow money in exchange for shares.
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