Copyright indiatimes
Glas Trust, which represents edtech company Byju’s US lenders, and the resolution professional of Think and learn, the parent company, have moved the National Company Law Appellate Tribunal (NCLAT) seeking an interim stay to prevent Aakash Educational Services from holding its extraordinary general meeting (EGM) on October 29 to approve a rights issue.The tribunal is expected to pass an order on the matter later today.This comes after the Bengaluru bench of the National Company Law Tribunal (NCLT) dismissed Think and Learn’s plea for an interim stay on the EGM. According to the counsel representing Glas Trust, the proposed rights issue would reduce Think and Learn’s stake in the coaching centre operator from 25.75% to around 5%, since the company, currently under insolvency proceedings, cannot participate in the issuance of new shares. Counsel for Aakash argued that the rights issue is crucial to secure funding, without which the company could end up in insolvency court, like Byju’s. The advocate also questioned whether a creditor of Byju’s has the authority to interfere in Aakash’s internal affairs, given that Aakash is not insolvent.Last year, on November 20, the NCLT restrained Aakash from amending its AoA on a petition filed by private equity firm Blackstone, a minority shareholder, which had alleged that the amendment was aimed at removing its rights and conferring special rights on Ranjan Pai’s Manipal Education & Medical Group (MEMG), the largest shareholder. However, after reaching a settlement with MEMG, Blackstone withdrew its petition before the NCLT on February 26, despite the case having reached its final stages, with all parties having concluded their arguments.
