The Chennai bench of the National Company Law Appellate Tribunal (NCLAT) on Tuesday, October 1 adjourned the case involving the debt-ridden Indian edtech company BYJU’s and a group of its US lenders to November 6.
The U.S.-based lenders are represented by Glas Trust Company LLC which collectively extended over 85 percent of the $1.2 billion term loan to BYJU’s.
Last month, Glas Trust moved to the Supreme Court of India to oppose NCLAT’s decision to remove Glas Trust from the Committee of Creditors (CoC), halting insolvency proceedings against BYJU’s, and approving its settlement of INR 158.9 crore with the (BCCI).
Besides this, the National Company Law Tribunal (NCLT) on Tuesday adjourned a matter between Byju’s investors and its parent, Think & Learn Pvt Ltd, to November 18, citing that the “Supreme Court is looking into the matter.”
In a separate development last month, Byju Raveendran, founder of BYJU’s, in a letter to the employees offered a sincere apology for the company’s inability to provide timely compensation for their hard work. This development marks a stark contrast to BYJU’s phenomenal success in previous years. However, the company’s fortunes have since taken a downturn due to an array of regulatory challenges and contentious disputes with investors, ultimately culminating in insolvency proceedings.
In a gesture of gratitude, Byju Raveendran announced that he has secured additional funding, despite significant challenges, as a small token of appreciation for his employees’ dedication and hard work.
“It won’t be much, but each one of you will receive a small payment by this weekend. This is not nearly what you deserve, but it is what I can offer right now. And I promise you this – the day we regain control of our company, you will get more than your fair share.” said Raveendran in the letter obtained by Business Standard
Raveendran expressed his deepest gratitude to employees for their unwavering support during this tumultuous period. He assured the employees that their dedication would be recognized and rewarded. Speaking not just as the founder, but as a fellow educator, Raveendran made an impassioned plea to his team, urging them to continue teaching and believing in the company’s mission.
“I speak to you today, not as the founder of Byju’s, but as one of you – a teacher. I know what it feels like to stand in front of a class, day after day, even when the going gets tough. And these past three months, I know, you have been doing exactly that.” the letter further reads
“I owe you an apology. You have given your best, yet we have not been able to compensate you for your work. This is not right, and for that, I am truly sorry. The past three months have been a perfect storm of legal battles, financial uncertainties, and challenges none of us ever expected. But through it all, you have stood strong. You have upheld the highest calling of a teacher – to educate, to inspire, and to guide,” Raveendran laid an apology
Byju Raveendran revealed that Byju’s is currently undergoing an insolvency process. However, the company has contested this process through legal channels, with the matter currently pending in court.
“Because we believe in this company, we believe in our mission, and most importantly, we believe in you. We know that Byju’s is not just a business model. We serve millions of students across the country, and we do that through the tireless efforts of thousands of teachers like you,” said Raveendran.
Byju Raveendran revealed that Byju’s is currently entangled in multiple legal disputes. Notably, US-based lenders have initiated a contentious case, asserting claims to the company’s assets in India. Raveendran deemed this claim unfounded, sparking an ongoing legal battle.
“But they have no entitlement to these assets, as per the agreement we signed with them. The so-called trust that represents them in India has no legal standing. It does not represent the majority of these lenders. Still, the reality is that I no longer control the company’s bank accounts. We are confident of winning this case, and while we wait, I understand the burden this places on you.” said Raveendran
Despite the ongoing legal challenges, Byju Raveendran emphasized that this cannot be used as an excuse for complacency. He acknowledged the pressing realities faced by employees, who have financial obligations, families to provide for, and personal lives to nurture.
“And yet, in these trying three months, you have continued to deliver. You have taken classes, solved doubts, created content, and kept our students engaged. You have done all this without asking for anything in return, even when your patience must have been wearing thin,” he said
Raveendran drew on his roots as a teacher, emphasizing the profession’s unwavering dedication.
“A teacher doesn’t halt their journey simply because the path becomes challenging,” he said. “Instead, they persevere, driven by a purpose that transcends obstacles.” he said
“You have shown what true dedication means. You have taught me, yet again, what it means to be a teacher. Even in the face of these challenges, you have chosen to rise above them. And for that, I am deeply, forever grateful.” he added
Byju Raveendran made an emotional acknowledgment, separating his personal legal struggles from the company’s challenges.
“If I could, I would have shielded you from all the troubles that have come our way. But you have taken on this burden with grace, with strength, and with resilience that humbles me,” he said.
“I know that, together, we will come out of this stronger than before. We cannot stop. We cannot even slow down. Because we have millions of students depending on us. They are the reason we keep going. They are the reason we fight these battles. And they are the reason we will win.” Raveendran concluded
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