“When we regain control, your salaries will be paid promptly, even if that means raising more personal debt. This isn’t just a promise – it’s a commitment. We have investors ready to back our turnaround story,” said Byju Raveendran.
On August 14, the Supreme Court stayed the National Company Law Appellate Tribunal’s (NCLAT) order that approved the settlement deal between Think & Learn Pvt Ltd, the parent company of Byju’s, and the Board of Control for Cricket in India (BCCI).
The order followed an appeal by US lender GLAS Trust Co LLC, representing lenders owed $1.2 billion. The lenders contested the settlement between the edtech firm and BCCI, claiming that the funds paid by Byju Raveendran’s brother Riju Ravindran were tainted.
According to Byju Raveendran, the apex court has temporarily stayed the NCLAT’s decision and so control of the company’s accounts has not yet been restored. This has prevented the founders from infusing more capital to pay salaries, as they have done over the past several months.
The apex court also asked the cricket board to keep Rs 158 crore, realised in the settlement, in a separate escrow account. The court will hear the matter next on August 23.
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Over the last 29 months, the company’s sole source of capital was the founders, infusing around Rs 7,500 crore for operations. Of the Rs 3,976 crore paid in salaries over two years, Riju personally infused Rs 1,600 crore, Byju Raveendran said.On August 1, ET reported that Riju Ravindran’s counsel told the bankruptcy appellate tribunal that he was using his personal funds to clear the company’s payment arrears with the BCCI. These funds were raised through the sale of shares in Byju’s parent company, Think & Learn, between May 2015 and January 2022.
No part of the money has come from the term loan the company had raised from the US lenders opposing the settlement deal with the BCCI, his counsel had said.
“These are not the original lenders who gave us $1.2 billion TLB for expansion, which was to be repaid in November 2026. These aggressive foreign distress funds created enough noise, bought these bonds at a fraction of the original value, unlawfully accelerated the loan, and asked us to pay back in full within 16 months of disbursing the loan,” Byju Raveendran said.
Byju Raveendran said that the company is close to ending the negative business cycle and is showing signs of recovery. “We are ready to launch Byju’s 3.0, an AI-driven, hyper-personalised educational platform low on cost and high on impact,” he added.