Troubled edtech major Byju’s on Wednesday sought 48 hours from the National Company Law Tribunal (NCLT) to decide if it can give an undertaking, as sought by the bankruptcy court, not to pledge, sell or transfer its assets in a dispute with some of its investors.
The case, initiated by US-based lenders including Glas Trust, alleges that Byju’s parent company, Think and Learn (TLPL), defaulted on a $1.2 billion loan guarantee. The lenders filed an insolvency plea against Byju’s in February over unpaid dues.
In a hearing at the Bengaluru bench of NCLT on Wednesday, Byju’s lawyers indicated the company needs time to consider whether such an undertaking can be given. The NCLT has scheduled the next hearing for July 9, after Byju’s informed the tribunal of its decision.
The lenders’ application seeks to restrain Byju’s from alienating its shares. They claim that since filing the plea in February, Byju’s promoter borrowed Rs 350 crore in exchange for some of his shares. The lenders expressed concerns about potential difficulties in recovering funds if such transactions continue.
The NCLT noted that approximately 10 insolvency petitions are currently pending against Byju’s in its Bengaluru bench. All of these pending matters are up for hearing next on July 4.