US lenders ask NCLT to restrict Byju's from selling or transferring shares: Report

There is more trouble for the embattled edtech company Byju's. The US-based lenders of Byju's have urged the National Company Law Tribunal (NCLT) to restrain it from pledging, selling or transferring its shares, Moneycontrol reported on Wednesday.

The lenders have filed the insolvency plea through US-based non-bank loan agency Glas Trust Company LLC. They told the tribunal on Wednesday that Byju's was borrowing more money and alienating its shares in exchange, thereby “causing grave prejudice to them”.

This is the second time the lenders have raised concerns on this issue. In February, they filed the plea that promoter Raveendran Byju borrowed Rs 350 crore in exchange for some of his shares.

They pointed out that as Byju was based in Dubai, there would be no one to prosecute and recover the money from if he continued borrowing money in exchange for shares.

The lenders urged the NCLT to pass an immediate stay order to protect their interests.

Over 100 lenders had loaned money to Byju's' US entity, Byju's Alpha Inc, which is undergoing a voluntary bankruptcy process in a Delaware court.

Earlier this week, Byju’s assured employees of clearing salaries and statutory dues based on cash flow. The CTO shared commitments from the townhall with founder Byju Raveendran, including paying February and March salaries by June 30 (worst case July 8). Employees were also assured in a professional tone.