Education solutions provider Educomp is reported to have not been paying salaries to 6,000 staffers for the past three months, sources told CNBC-TV18's Malvika Jain. The company, which filed for a corporate debt restructuring (CDR) plan in July 2013, seems to be battling with liquidity problems currently. Anand Ekambaram, the company's president for Smartclass has also resigned.
Also read: CDR cell sees over 50% jump in loan recast requests in Q1 Also, staffers have been seeking termination of contract soon. In fact, many people of the workforce have not reported to work for some time now. Sources also indicate that schools have stopped making payments, which has largely hit the liquidity of the company. A senior official at Educomp told CNBC-TV18 "In some instances, delayed payments to Educomp on part of schools using Smartclass led to delays in the payment to their resource coordinators (provided by Educomp to Schools to ensure effective usage of Smartclass). We hope to resolve this situation very soon as we are currently in midst of a comprehensive drive to boost collections from such schools and where necessary, we will discontinue services to non-paying schools."Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
