Embattled edtech company Byju’s decided to hold off its staff salaries for the second month in a row as it awaits a green signal from the National Company Law Tribunal to use funds from the recently floated rights issue.
"We are writing to you today with a heavy heart but with a message of hope and reassurance. We regret to inform you that there will again be a delay in the disbursement of salaries," the management said in an email to employees on April 1.
“A few misguided foreign investors in BYJU'S have obtained an interim order in late February which has restricted usage of the funds raised through the successful rights issue. This irresponsible action by the 4 foreign investors has compelled us to temporarily hold the disbursal of salaries until the restriction is lifted,” they added.
In the email to employees, the company’s management also said that it has the necessary votes to increase the authorised capital for the rights issue, a prerequisite to bring the rights issue into effect.
“It means that once the restrictions on using the raised funds are lifted, we can meet all our salary commitments immediately,” Byju's management added. Moneycontrol has reviewed a copy of the letter.
The company added that it is following a parallel line of credit to ensure that employee salaries are disbursed by 8th of April.
Byju’s had also held back February salaries and later paid a part of the dues to employees in the middle of March. The company is yet to pay the remaining February salaries to its staff.
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