Smartphone manufacturer Oppo takes Byju’s to NCLT for Rs 13 cr unpaid dues | Company News
Smartphone manufacturer Oppo told the National Company Law Tribunal (NCLT) Bengaluru on Thursday that Byju’s has not paid them Rs 13 crore for pre-installing their apps on their phones.
The tribunal, meanwhile, has designated July 3 as ‘Byju Day’ as nearly 10 petitions are expected to be heard that day against the edtech firm.
Oppo said that Byju had admitted to owing them money and this was a clear case for admitting the edtech firm to insolvency to recover its dues.
The smartphone manufacturer also said Byju’s promoters were absconding and did not live in India anymore. Byju’s counsel took exception to the usage of the term ‘absconding’ and sought an adjournment.
The edtech firm had earlier told the tribunal that it had settled a case with France-based Teleperformance Business Services. However, another business services provider, iEnergizer, on the same day filed a new insolvency plea.
The tribunal on June 12 had told Byju’s to maintain the status quo with regard to existing shareholders and their shareholding. The firm challenged the order in Karnataka High Court, and the court reserved its orders on Thursday.
As per reports, Justice SR Krishna Kumar said that he would dictate the order on July 2. He said that the court was not inclined to delve into the cross-allegations made by Byju’s and its investors but was only concerned with the correctness of the NCLT’s interim order.
Byju’s is currently restricted from issuing shares and using funds raised from a $200 million rights issue until the tribunal decides the matter. This matter will also be heard on July 4.
“This Tribunal hereby restrains the Respondents (Byju’s) from going ahead with the present rights issue which is in progress, till the disposal of the main plea. The Respondents are further directed to keep the amounts collected so far since the opening of the second rights issue in relation to this offer in a separate account which should not be utilised till the disposal of the main petition,” the NCLT order of June 12 read.
The second rights issue started on May 13 and was to end on June 13. With that, Byju’s won’t be allowed to utilise any funds that it has so far collected from the second rights issue, and the amount from the second rights issue will be deposited in a separate account.
Byju’s is facing multiple challenges, including a cash crunch, delays in financial reporting, and legal disputes with lenders and investors.
Byju’s is also grappling with another setback as it faces delays in paying salaries to employees. The delay stems from funds raised through a recent rights issue, which have been locked in a “separate account” due to the ongoing dispute with investors.
Byju’s and its investors are fighting at the National Company Law Tribunal (NCLT) over the company’s rights issue of $200 million in a petition alleging mismanagement.
The four investors, Prosus, General Atlantic, Sofina, and Peak XV Partners (formerly Sequoia India & Southeast Asia), had sought a stay on the rights issue at less than 99 per cent enterprise valuation compared to Byju’s peak valuation of $22 billion.
A couple of thousand disgruntled former employees of Byju’s have joined hands to fight for their rights. Several among them, who are based in various parts of the country, are planning to take their former employer to the National Company Law Tribunal (NCLT) in Bengaluru for the payment of their dues.
Overseas, Riju Ravindran, a director of Byju’s parent company, Think & Learn Pvt, faces financial penalties for defying a US judge’s order to find out where the firm hid $533 million that disgruntled lenders said should be rightfully theirs.
The missing cash is part of the dispute between Byju’s and an ad hoc group of lenders (the Ad Hoc Group), which lent $1.2 billion as term loans (Term Loans) to the company.
First Published: Jun 27 2024 | 9:02 PM IST
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