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Keep proceeds of rights issue in escrow account: NCLT to BYJU'S
Inshorts
·
1y ago
Medial
The National Company Law Tribunal (NCLT) has directed BYJU'S to keep funds raised through its $200-million rights issue in an escrow account. The edtech startup has also been asked to consider extending the closure date of the issue. The NCLT on Tuesday reserved its order in a lawsuit filed by four BYJU'S investors against the issue.
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NCLT directs Byju’s to maintain status quo, halting $200 million rights issue
Economic Times
·
1y ago
Medial
The National Company Law Tribunal (NCLT) has ordered Byju's to maintain status quo in its shareholding, pausing its controversial rights issue. Byju's $200 million rights issue is being conducted at a 99% discount, sparking protests from investors. NCLT has asked Byju's to pause its second rights issue and keep cash from the first rights issue in an escrow account. The tribunal also requested details of share allotment and escrow bank accounts within 10 days. The matter will be heard again on July 4. In addition, lenders have petitioned a US court to initiate bankruptcy proceedings against Byju's subsidiaries.
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NCLT declines to stay EGM called by troubled Byju's over $200 million rights issue
IndianStartupNews
·
1y ago
Medial
The National Company Law Tribunal (NCLT) has rejected a plea to halt BYJU'S upcoming extraordinary general meeting (EGM) scheduled for March 29. The EGM is important for BYJU'S as it aims to increase its authorized share capital for a $200 million rights issue. The decision comes amidst ongoing legal battles and allegations of oppression and mismanagement from some of the company's investors. The NCLT stated that decisions made at the EGM can be challenged, but not stopped beforehand, and directed BYJU'S to keep the proceeds from the rights issue in a separate escrow account.
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Keep Proceeds From Rights Issues In Escrow Account, Consider Extension Of Issue: NCLT To BYJU’S
Inc42
·
1y ago
Medial
The National Company Law Tribunal (NCLT) has ordered BYJU'S to keep the proceeds from its rights issue in a separate escrow account and consider extending the closure date of the rights issue. This order comes in response to a petition filed by a group of investors including Prosus, Peak XV Partners, General Atlantic, and Sofina. The NCLT has also asked relevant authorities to submit their replies within two weeks. The next hearing for the case is scheduled on April 4th.
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Byju’s challenges NCLT order restricting fund use in Karnataka High Court
Economic Times
·
1y ago
Medial
Edtech firm Byju's has filed a petition challenging the National Company Law Tribunal (NCLT) order that prevents the company from proceeding with its second rights issue. The NCLT had directed Byju's to maintain status quo and halt its second rights issue, as well as put funds from the first rights issue into an escrow account. Byju's is also requested to provide information about recipients of shares issued during the first rights issue. The $200 million rights issue has faced protests from investors, and some lenders have filed a petition in a US court for bankruptcy proceedings against Byju's subsidiaries.
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BYJU’S Closes $200 Mn Rights Issue, But Employee Salaries Delayed Again
Inc42
·
1y ago
Medial
BYJU's, the edtech major, has closed its $200 million rights issue but is facing further delays in salary payments to its employees. In an email to staff, CEO Byju Raveendran blamed a small number of investors who had locked the funds raised in a separate account, preventing the company from making the payments. The Bengaluru bench of the National Company Law Tribunal had ordered BYJU's to keep the proceeds from the rights issue in a separate escrow account. Raveendran said the company was aiming to ensure salaries were credited by 10 March.
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Byju’s to keep proceeds of rights issue in separate account, consider extending closure date: NCLT
Thehindubusinessline
·
1y ago
Medial
The Bengaluru bench of National Company Law Tribunal (NCLT) has directed Byju's, the edtech company, to keep the proceeds from its rights issue in a separate account until the oppression and mismanagement plea filed by investors is resolved. The tribunal has also asked Byju's to consider extending the closure of the rights issue. The directive came after four investors filed a suit alleging that they were being forced to participate in the rights issue or face a reduction in their shareholdings. The tribunal has allowed three days for written submissions and scheduled another hearing for April 4, 2024.
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BYJU’S Delays Employee Salaries Yet Again Amid Battle With Investors
Inc42
·
1y ago
Medial
Embattled edtech giant BYJU’S has delayed salary payments for its employees for the second consecutive month, citing restrictions on the usage of funds raised through a recent rights issue. The company's CEO, Byju Raveendran, sent an email blaming foreign investors for obtaining an interim order that has led to the delay. BYJU’S is now seeking a line of credit to ensure that salaries are credited by April 8. The National Company Law Tribunal (NCLT) has instructed BYJU’S to keep the proceeds from the rights issue in a separate escrow account. The company's board is considering an offer for disgruntled investors to participate in the rights issue.
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Expecting Challenge To NCLT’S Order, BYJU’S Investors File Caveats In SC
Inc42
·
1y ago
Medial
Investors of edtech startup BYJU'S have reportedly filed caveats in the Supreme Court (SC) urging that they be heard before any order is passed on potential pleas against a recent National Company Law Tribunal (NCLT) order. The NCLT's order had greenlit BYJU'S $200 million rights issue, but directed the company to keep the proceeds in a separate account. In response, backers Prosus, Sofina, Peak XV Partners, and General Atlantic (Singapore) filed separate caveats. BYJU'S has been facing legal challenges from its investors, leading to a public standoff and a recent extraordinary general meeting seeking to remove the founder and CEO.
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Relief for BYJU’S As NCLT Reserves Verdict On Investors’ Plea
Inc42
·
1y ago
Medial
The National Company Law Tribunal (NCLT) has reserved its judgement on a petition filed by investors, including Prosus and General Atlantic, against BYJU'S CEO and other promoters. The investors are seeking status quo on BYJU'S ongoing $200 million rights issue, claiming it will erode their stakes in the company. The NCLT directed BYJU'S to increase its authorized share capital and park the money raised from the rights issue in a separate bank account. BYJU'S plans to go ahead with the rights issue, stating its importance for the company's survival and employment of 12,000 staff.
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Byju’s investors file caveats in SC
Thehindubusinessline
·
1y ago
Medial
Investors of Byju's, the edtech company, have filed a plea with the Supreme Court to be heard before the court decides on a potential plea against a National Company Law Tribunal (NCLT) order. The investors, including General Atlantic and Sofina, have lodged separate caveats at the top court. This comes after the NCLT directed Byju's to hold the proceeds from a rights issue in a separate account until the disposal of an oppression and mismanagement plea by investors. Byju's has faced several legal challenges recently, including insolvency petitions from US lenders and the Board of Control for Cricket in India.
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