B2C BYJU’S Saga: US Lenders Counter Debt Claim in $1.2 Bn Loan Dispute
B2C BYJU’S Debt Dispute Overview
B2C BYJU’S saga is heating up as US lenders challenge founder Byju Raveendran's claim that the verified debt is only INR 20 Cr.
Key Lender Arguments
US-based creditors represented by Glas Trust argue that the edtech company must repay the full $1.2 Bn term loan B with interest. They maintain that Raveendran and BYJU’S interim resolution professional cannot disqualify any term loan lender, asserting that even if they did, the edtech firm would still be obligated to repay the entire loan amount plus interest, according to ET.
Creditors' Claims of Non-Payment
- Creditor Glas Trust alleges that BYJU’S has not paid any contractual dues in more than 17 months.
- BYJU’S reportedly owes INR 11,432 Cr ($1.36 Bn) to US-based lenders.
Legal Proceedings
Glas Trust has approached the Supreme Court challenging a ruling by the National Company Law Appellate Tribunal (NCLAT) that stayed the bankruptcy proceedings against BYJU’S. The matter is set for a hearing on September 17.
Furthermore, Glas Trust seeks to remove BYJU’S interim resolution professional, Pankaj Srivastava, from the process.
Other Creditors' Actions
Other creditors, such as Aditya Birla Finance, have also moved to the NCLT, alleging fraudulent mislabeling in a bid to pressure BYJU’S further.
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.