Byju Ravindran, the founder of the edutech company Byju, which is facing financial crisis, has said that as soon as he gains control of the company’s accounts, the salaries of the employees will be paid immediately, even if I have to take more loans. Ravindran has given this message to his employees in an e-mail about this. According to the news of Economic Times, Ravindran has said that what I am saying is not just a promise, it is a commitment. He said that we have investors ready to support our story of change.
The company had an agreement with BCCI
According to the news, on August 14, the Supreme Court stayed the order of the National Company Law Appellate Tribunal, which approved the agreement between Byju’s parent company Think and Learn Private Limited and the Board of Control for Cricket in India (BCCI). The order came following an appeal by US lender GLAS Trust Company LLC, representing lenders of $1.2 billion. The lenders opposed the agreement between the edtech firm and the BCCI, claiming that the funds paid by Byju Raveendran’s brother Riju Raveendran had been misappropriated.
Barred from infusing more capital
According to Raveendran, the Supreme Court has temporarily stayed the NCLAT order and hence control over the company’s accounts has not been restored yet. This has barred the founders from infusing more capital to pay salaries, as they have done in the last several months. The Supreme Court also asked the cricket board to keep the Rs 158 crore received in the agreement in a separate escrow account. The court will hear the matter next on August 23.
In the last 29 months, the sole source of capital for the company was the founders, who infused about Rs 7,500 crore for operations. Byju Raveendran said that out of the Rs 3,976 crore paid as salary over two years, Riju personally invested Rs 1,600 crore.
