Struggling edtech firm, Byju's confirmed the release of a portion of pending February salaries for all employees. The edtech also promised to pay the balance once it is allowed to use the funds from the recently closed rights issue.
The company’s management added that it expects the salaries to be reflected in employee accounts on Monday, as it was delayed due to a second Saturday and on account of the long weekend.
The move comes after Byju Raveendran's assurance to meet salary obligations by the specified date, despite challenges arising from a dispute with investors, preventing the utilization of funds raised through the rights issue.
Ahead of US hearing, Byju's says it is beneficial owner of 533 mn fund parked in US
Ahead of a US court hearing on the whereabouts of the USD 553 million funds Byju's had parked in an American investment firm, the edtech company on Sunday evening said its subsidiary in the US remains the beneficial owner of the fund.
On Saturday, Byju's stated that it had no money to pay salaries to employees after just-raised funds through the rights issue were locked (in a separate account) after a dispute with investors. It is not clear if Byjus is the beneficial owner of USD 533 million, then why it could not use them for paying salaries.
"Camshaft, in its latest submission, has disclosed to the Delaware Court that the USD 533 million was transferred from BYJU'S Alpha to another 100 per cent Think & Learn owned subsidiary, Inspilearn LLC (a Delaware firm).
"As BYJU's has indicated previously - the funds continue to remain in a Think and Learn subsidiary, contrary to the false allegation made by a select list of investors before the NCLT in India," Byju's said in a statement.
According to reports, the Florida hedge fund has been asked to reveal where the money is located or face possible sanctions from a federal judge on Monday.