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BusinessByju's blames foreign investors' orders for delaying March salaries again, assures payment...

Byju’s blames foreign investors’ orders for delaying March salaries again, assures payment by April 8

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“Byju's Faces Salary Delay Issues Again Due to Foreign Investors' Restrictions, Committed to Clear All Dues by Early April”

Edtech giant Byju's has notified staff about yet another delay in March salary credits owing to funding constraints arising from restrictions imposed by some overseas investors. In a message to employees, the management regretted the postponement and largely blamed an injunction from a handful of ‘misguided' shareholders that has suspended usage of capital raised via a recent rights issue.

However, the leadership reassured team members that parallel financing is being tapped to disburse all outstanding wages by April 8th. It said the entire situation arose because a few dissatisfied foreign backers obtained an interim court directive last month imposing curbs on deployment of capital generated through the successful rights offering.

While apologizing for the difficulty, Byju's urged workers to remain hopeful as the setback is only temporary. It expressed confidence in an equitable judicial solution that will enable utilizing the raised funds and solve present cash flow issues. The statement thanks employees for their patience and dedication during challenging times, asserting that together both sides will overcome this hurdle soon.

Previously valued at $22 billion, Byju's has been working to control expenditures after high-profile acquisitions and aggressive expansion plans impacted budgets. However, it says the rights issue obtained the mandatory approvals and just needs restrictions lifted so obligations can be fulfilled immediately. With support from founders who pumped money back in, April 8th has been reinforced as the deadline to pay all pending salaries.

Northlines
Northlines
The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.

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