The management of Byju’s has indicated to its employees that it is seeking alternative funding to ensure salaries are paid by April 8. In a letter to employees, it said that regardless of the court verdict, it is following “a parallel line of credit” to ensure that salaries are paid by April 8. “We regret to inform you that there will again be a delay in the disbursement of salaries,” the management said.
Byju’s, according to sources, had held back February salaries but later paid back some of the dues in mid-March.
Meanwhile, source close to the company indicated that the period to participate in the rights issue has been extended to April 4, a 72-hour window starting April 1. Investors in Byju’s, including Peak XV Partners, General Atlantic, Chan-Zuckerberg Initiative, and Prosus had on Friday rejected the olive branch extended by founder-CEO Byju Raveendran, to participate in the rights issue.
“Nothing has changed in the way the management operates and the information, financial transparency and governance controls we have been seeking. We are already protesting in NCLT so the question of participating in the current rights issue doesn’t arise,” sources close to the investor group said on Monday.
The next hearing of the plea of oppression and mismanagement filed by them in the National Company Law Tribunal (NCLT) against the Byju Raveendran-led management is scheduled for April 4. While the company has received the approval to increase the authorised share capital, the funds raised from a $200 million rights issue, need to be parked in an escrow account amidst the ongoing dispute with the above-mentioned investors.
The postal ballot voting process for the resolutions discussed in the extraordinary general meeting (EGM) conducted on Friday will go on till April 6. As earlier reported, the NCLT had on Thursday refused to defer the EGM which was called by the board of directors to raise the authorised capital to give effect to the rights issue.