Aakash Educational Services has pleaded with the NCLT to set aside its November 20 ruling that barred it from amending its articles of association
Senior counsel representing Aakash argued before the Tribunal that the firm urgently needs to secure funding “in order to survive and sustain its business”
They further warned that the Aakash could face a financial crisis as soon as February if it was not allowed to raise money either via equity or debt
Amid the ongoing bankruptcy proceedings against edtech startup BYJU’S, its coaching arm Aakash Educational Services has pleaded with the National Company Law Tribunal to set aside its November 20 ruling that barred it from amending its articles of association (AoA).
Senior counsel representing Aakash argued before the Tribunal that the firm urgently needs to secure funding “in order to survive and sustain its business,” Bar and Bench reported.
“These are physical classes. We have 5,000 teaching and non-teaching staff and 3.5 Lakh students. We need to raise funds,” they said.
They further warned that the Aakash could face a financial crisis as soon as February if it was not allowed to raise money either via equity or debt.
While its largest shareholder Manipal Systems, which owns a 40% stake in Aakash, is willing to provide fresh capital, the stay order is preventing it from doing so, they added.
(The story will be updated soon)
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