Byju Raveendran explains why firm has not paid July salaries: ‘Not in control…'
Byju Raveendran in an email to employees said that every legal roadblock has lengthened the company's long trek to recovery.
Edtech firm Think and Learn, owner of Byju's, has not paid the July salary to employees as the company was unable to access its accounts due to a temporary stay granted by the Supreme Court on the National Company Law Appellate Tribunal (NCLAT's) decision, Byju Raveendran said. This comes after NCLAT approved the ₹158.9 crore dues settlement with BCCI and set aside insolvency proceedings against Byju's on August 2. However, the Supreme Court on August 14 stayed the verdict of the insolvency appellate tribunal setting aside the insolvency proceedings against the company on the basis of a plea by US-based creditor Glas Trust Company LLC.
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Byju Raveendran in an email to employees said that every legal roadblock has lengthened the company's long trek to recovery. He wrote, “I want to address the matter of utmost concern to you - and to me as well. Your salary for July 2024 has not been credited yet."
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He added, "Our company recently faced a serious challenge that pushed us into insolvency due to a dispute with the BCCI. We settled the case and were on the brink of regaining control of our finances after the NCLAT ruled in our favour. The apex court has issued a temporary stay on the NCLAT's decision, which means the control of the company's accounts has not yet been restored to us."
Some foreign lenders have been litigating against the company and appealed the NCLAT ruling before the apex court, he said.
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He said, “Founders are unable to infuse more capital to pay salaries like we have always done over the past many months. I guarantee this: When we regain control, your salaries will be paid promptly, even if that means raising more personal debt. This isn't just a promise - it's a commitment. We have investors ready to back our turnaround story.”