Byju’s bombarded by new cases at home and abroad

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Edtech company Byju’s problems are showing no signs of abating. There are three big news related to Byju’s and its parent company Think and Learn. First, some previous employees of Byju’s  are preparing to drag the company to NCLT. Second, three notices have been issued to Byju’s for not paying dues to vendors and third, a US court has found Riju Raveendran, brother of Byju’s founder Byju Raveendran, guilty of contempt.

According to a report, about 2,000 disgruntled old employees of Byju’s have joined hands to fight for their rights.  Next week, these employees are preparing to take their former employer to NCLT for claiming payment dues.

On the other hand, NCLT has issued notices to Byju’s parent company Think and Learn Pvt Ltd in three cases for non-payment of dues to operational creditors. The NCLT bench gave two weeks’ time to Byju’s to respond and issued a rejoinder to the petitioner.  It has been claimed in the petitions that Byju’s owes Rs 1.43 crore to McGraw Hill and about ₹6 crore to Cogent.

Meanwhile, Byju received a third blow in America. Riju Raveendran, brother of the company’s founder Byju Raveendran, has been found guilty of contempt for not following the instructions of the American court. Riju has been found guilty of contempt by the court. Byju’s American subsidiary Byju’s Alpha was directed to disclose $533 million received as part of term loan.

According to a statement issued by the foreign lenders, Judge John Dorsey of the United States Bankruptcy Court of Delaware said that Raveendran’s testimony “lacked credibility”. He was later found guilty of contempt for not disclosing where the term loan money was kept or failing to locate the place. The amount of fine will be decided in further hearing. The amount of $533 million is part of Byju Alpha’s $1.2 billion term loan.

Byju’s is facing problems on multiple fronts simultaneously, which includes cash crunch, delay in financial reporting, legal disputes with lenders and investors.