Byju’s also sought to assure staff that it is on a parallel line of credit. (Representative)
New Delhi:
Controversial edtech company Byju’s has informed its employees that there will be “yet again” delays in salary payments.
Byju’s management, in a notice to employees, blamed an interim order obtained in late February by “some misguided foreign investors” that “restricted the use of the funds raised through the successful rights issue”.
Byju’s also sought to assure staff that it is on a parallel line of credit to ensure employees receive their salaries before April 8.
“We write to you today with a heavy heart, but with a message of hope and reassurance. We regret to inform you that there will be another delay in the payment of salaries. Some misguided foreign investors in BYJU’S have been granted an interim order obtained in late February, which has limited the use of the funds raised through the successful rights issue,” management wrote.
The note further said: “This irresponsible action by the four foreign investors has forced us to temporarily suspend the payment of salaries until the restriction is lifted.” Byju’s said it has full confidence in the Indian legal system and eagerly awaits a favorable outcome that will enable the country to utilize the funds raised through the rights issue and alleviate the financial difficulties it is currently facing.
“As you know, the founders have put everything back into the company and regardless of the court ruling, we are following a parallel line of credit to ensure that you receive your salary before April 8,” management said.
On the positive side, management has the necessary say to increase the authorized capital for the rights issue.
“It means that once restrictions on the use of the funds raised are lifted, we can meet all our payroll obligations immediately. As you may have read, our founder, Byju Raveendran, has once again appealed to disgruntled investors in a spirit of cooperation, and we hope that litigious investors will have a reasonable mind to stop frustrating our daily lives,” it said report.
The company said it understands the feelings of helplessness these circumstances may create, adding “we share your frustration.”
“However, we urge you to maintain hope and remain resilient. BYJU’S has overcome challenges recently and we are confident that together we will overcome this final hurdle. We are confident that justice will prevail and that the financial constraints will be resolved quickly. management wrote, thanking employees for their patience, understanding and continued dedication during the difficult time.
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