According to report quoting sources, the CEO of Byju's, an ed-tech powerhouse and formerly the largest startup in India with a $22 billion valuation, stated in a court statement that the company's insolvency procedures would probably compel thousands of workers to resign and lead to a complete suspension of its operations.
Supported by investors such as Prosus and General Atlantic, Byju's has had many challenges in the past few months, such as layoffs, a decline in company value, and a dispute with investors who have charged CEO Byju Raveendran of failings in corporate governance. Byju's has refuted any misconduct.
Byju's is currently dealing with its worst crisis as a result of an Indian tribunal this week initiating insolvency procedures in response to a complaint from the cricket body of that nation for an unpaid $19 million sponsorship agreement.
The board of Byju has been removed, and its assets have been frozen.
In a court appeal seeking to overturn the insolvency process, Raveendran stated that the insolvency process will probably lead to vendors who provide Byju's with essential services for the maintenance of online platforms declaring a default, "leading to a total shut down of services" and bringing the operation to "a grinding halt."
Although Raveendran's attorney, MZM Legal, filed a 452-page document with the Karnataka High Court, it is not available to the public. Reuters has read it, and it provides the first information about the potential effects on the company's operations.
On Monday, the matter will be heard by the court.
There were no comments on the issue available from Byju's or Raveendran.
Byju's, which has operations in over 21 countries, gained notoriety by providing online courses during the COVID-19 epidemic. It also provides coaching lessons in person.
Havana, the capital of Cuba, is well known for the vibrant old cars that still roll through its streets. However, in the capital, a change is beginning to be noticed.
The statement further said that Raveendran was prepared to settle the outstanding debts to the Indian cricket board within ninety days and that the company's employees "may suffer... and may be forced to leave the organisation."
There are over 27,000 workers at Byju's, including 16,000 instructors.
(Source:www.livemint.com)
Supported by investors such as Prosus and General Atlantic, Byju's has had many challenges in the past few months, such as layoffs, a decline in company value, and a dispute with investors who have charged CEO Byju Raveendran of failings in corporate governance. Byju's has refuted any misconduct.
Byju's is currently dealing with its worst crisis as a result of an Indian tribunal this week initiating insolvency procedures in response to a complaint from the cricket body of that nation for an unpaid $19 million sponsorship agreement.
The board of Byju has been removed, and its assets have been frozen.
In a court appeal seeking to overturn the insolvency process, Raveendran stated that the insolvency process will probably lead to vendors who provide Byju's with essential services for the maintenance of online platforms declaring a default, "leading to a total shut down of services" and bringing the operation to "a grinding halt."
Although Raveendran's attorney, MZM Legal, filed a 452-page document with the Karnataka High Court, it is not available to the public. Reuters has read it, and it provides the first information about the potential effects on the company's operations.
On Monday, the matter will be heard by the court.
There were no comments on the issue available from Byju's or Raveendran.
Byju's, which has operations in over 21 countries, gained notoriety by providing online courses during the COVID-19 epidemic. It also provides coaching lessons in person.
Havana, the capital of Cuba, is well known for the vibrant old cars that still roll through its streets. However, in the capital, a change is beginning to be noticed.
The statement further said that Raveendran was prepared to settle the outstanding debts to the Indian cricket board within ninety days and that the company's employees "may suffer... and may be forced to leave the organisation."
There are over 27,000 workers at Byju's, including 16,000 instructors.
(Source:www.livemint.com)
