Byju’s challenges fund use restriction in Karnataka High Court

Bengaluru, June 23 (UNI) Ed tech company Byju’s has taken its legal battle to the Karnataka High Court, urgently filing a plea to challenge the National Company Law Tribunal (NCLT)’s decision that restrained the company from using funds raised in its second rights issue.

The company launched a critical fundraising drive from May 13 to June 13 to strengthen its financial standing. However, the NCLT’s ruling blocked the company from accessing these funds, delivering a significant setback.

Behind the scenes, negotiations continued as the company pursued settlements with key creditors like Teleperformance and Surfer Technologies, aiming to ease its financial burdens.

Meanwhile, scrutiny intensified on its international operations, particularly in the United States, where its subsidiary faced mounting legal hurdles.

Despite once boasting a valuation of $22 billion, Byju’s recent fortunes plummeted, with HSBC assigning zero value to Prosus’ substantial stake in the company amid ongoing turmoil.

In a parallel legal saga across the Pacific, creditors pressed forward with bankruptcy proceedings against Byju’sAmerican entities, alleging financial mismanagement and unpaid debts, further clouding the company’s prospects overseas.

Amid these challenges, the ed tech firm achieved a modest victory by ensuring timely salary payments through its consistent revenue collections, a reassuring indication of stability during turbulent times.

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