Byju's seeks 48 hours to decide on undertaking to not sell or pledge assets

Byju's seeks 48 hours

Embattled edtech company Byju's on July 3 asked for 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.

"I don't know what my client (Byju's) wants to do but I will obtain instructions from them on whether such an undertaking can be given," Byju's senior counsel KG Raghavan told the tribunal.

The case will be heard on July 9 after NCLT is informed about Byju's decision to give the undertaking.

The lawyer’s statement was in response to an application filed by the company’s United States-based lenders who want the firm to be restrained from alienating its shares.

Senior advocate Uday Holla, who appeared for the lenders, took the court through various documents and told the court that Byju's conduct had not inspired confidence. Raghavan, however, said the lenders were approaching various forums to build pressure on them.

On May 29, lenders filed an application alleging that even after they filed the plea in February, promoter Raveendran Byju borrowed Rs 350 crore in exchange for some of his shares. Since Byju was based in Dubai, they would be left with no one to prosecute and recover the money from if he continued borrowing money in exchange for shares, they said.

Noting that close to 10 insolvency petitions were pending against Byju's in the Bengaluru bench of NCLT, the lenders said the cases spoke of the company's financial condition.

According to Holla, who appeared for Glas Trust, a US-based non-bank loan agency, Byju’s parent Think and Learn stood guarantee to a $1.2-billion (Rs 8,000 crore) loan.

The lenders had in February filed an insolvency plea against Byju's over unpaid dues.