Byju's Faces Debt Challenge as US Lenders Insist on Full Payment Obligations
US Lenders' Firm Stance on Byju's Debt Obligation
The financial situation for Byju's escalates with US lenders represented by Glas Trust countering claims made by Byju Raveendran regarding the company's debt. Raveendran asserted that the verified debt stands merely at Rs 20 crore, but lenders maintain that the full USD 1.2 billion Term Loan B must be repaid, alongside accrued interest.
Background of the Dispute
The troubles commenced when US lenders initiated legal action to reclaim the $1.2 billion Term Loan B. The lenders allege that BYJU'S Alpha improperly transferred USD 500 million abroad, breaching loan agreements. In response to these allegations, Byju's has asserted non-eligibility for the lenders but continues to face intense scrutiny.
Key Points in the Ongoing Legal Battle
- Lenders argue that neither Raveendran nor the Insolvency Resolution Professional has the authority to disqualify lenders.
- The lenders' committee criticized Byju's leadership exodus, citing resignation rates that highlight management instability.
- Disagreement persists over the acceleration of the loan, with Byju's maintaining that the acceleration by lenders was improper.
Continued Developments
The situation remains fluid, with ongoing litigation in both India and the United States. Legal representatives emphasize the distinct contractual obligations of Byju's, underscoring the arguments laid out in their filings and public statements.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.