Byju’S Moves Karnataka HC Against NCLT Order Restraining It From 2Nd Rights Issue
Date
6/23/2024 3:00:12 AM
(MENAFN- IANS) New Delhi, June 23 (IANS) Edtech company Byju's, mired in several controversies amid a cash crunch, has moved the Karnataka High Court against the order of the National Company Law Tribunal (NCLT), which restrained it from going ahead with its second rights issue.
The second rights issue commenced on May 13 and was expected to end on June 13.
The edtech company has been restrained from utilising any funds from the second rights issue by the NCLT.
The company's fresh plea in the Karnataka High Court is likely to come up for hearing on Monday, according to sources.
Byju's is exploring out-of-court settlements with two of its creditors, Teleperformance and Surfer Technologies.
The NCLT had adjourned the cases to June 26.
The company is facing multiple headwinds, in India as well as in the US against its subsidiary.
Once valued at $22 billion, the edtech company is now worth zero, according to a recent research note by the financial firm HSBC.
HSBC assigned zero value to investment company Prosus' nearly 10 per cent stake (or about $500 million) in Byju's.
"We assign zero value to Byju's stake amid multiple legal cases and funding crunch,” according to the note.
Earlier this month, a group of lenders petitioned against new entities, tied to the US subsidiary of Byju's, into bankruptcy in a US court, alleging that these entities were not paying their debts.
In February 2024, Byju's Alpha had filed for Chapter 11 bankruptcy protection in the US.
The company managed to process the employee salaries for May from monthly“collections”.
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