Byju's NCLT Hearing Postponed, Company Maintains Compliance With The Tribunal Orders
Byju's NCLT Hearing Postponed, Company Maintains Compliance With The Tribunal Orders
Embattled ed-tech company Byju’s received a temporary reprieve on Tuesday with the National Company Law Tribunal (NCLT) in Bengaluru deferred the hearing to June 6.
The company faces accusations from some of its key investors, but Byju's maintains it has followed court orders.
Byju's Lawyer, K. G. Raghavan, successfully countered accusations from the investors' legal team regarding a violation of a previous court order. Reportedly, the tribunal noted the investors' weak evidence in support of their claims.
This delay provides Byju's with additional time to further prove its adherence to NCLT's directives.
The NCLT previously rejected a request to block Byju's board from holding an Extraordinary General Meeting (EGM) aimed at raising capital through a rights issue.
Last week, Byju's announced shareholder approval for the rights issue. This allows its parent company, Think & Learn Private Limited, to issue new shares and complete the capital raise, potentially alleviating the company's significant cash flow issues.
The successful rights issue paves the way for Byju's to address its liquidity crisis, including outstanding employee salaries, regulatory dues, and payments to vendors.
