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BYJU'S' Hedge Fund Manager Faces Arrest Over Missing $533 Mn

Inc42 · 1y ago

BYJU'S' Hedge Fund Manager Faces Arrest Over Missing $533 Mn

BYJU'S, an edtech major, is facing trouble as a US insolvency court has ordered the arrest of a hedge fund manager allegedly involved in hiding $533 million from the company's lenders. The fund manager, William Cameron Morton, claimed to be hospitalized in a foreign country and refused to appear before the court. However, the judge found the excuse not credible and issued an arrest warrant. The court also fined the hedge fund $10,000 per day until it cooperates with the investigation into the missing funds. BYJU'S is already dealing with multiple challenges, including a looming debt crisis and legal cases.

Related News

Hedge fund manager faces arrest over $533 million taken from Byju's

Economic Times

Economic Times · 1y ago

Hedge fund manager faces arrest over $533 million taken from Byju's

A U.S. bankruptcy judge has ordered the arrest of William Cameron Morton, a hedge fund manager accused of helping Indian edtech startup Byju's hide $533 million from its lenders. Byju's Alpha, a subsidiary controlled by the lenders, filed for bankruptcy earlier this year after defaulting on $1.2 billion in debt. The lenders discovered that Byju's had sent the funds to Morton's hedge fund, Camshaft Capital. Morton failed to appear in court and provide evidence of hospitalization abroad, resulting in a warrant for his arrest and a $10,000 per day fine until compliance is achieved. Byju's lenders have sued Morton and Camshaft for the missing funds.

Hedge fund manager faces arrest in US over $533 mn taken from Byju's

VCCircle

VCCircle · 1y ago

Hedge fund manager faces arrest in US over $533 mn taken from Byju's

William Cameron Morton, a hedge fund manager, is facing arrest in the US for allegedly helping Indian edtech startup Byju's hide $533 million from its lenders. Byju's Alpha, a subsidiary controlled by the lenders, filed for bankruptcy after the startup defaulted on $1.2 billion in debt. Upon investigation, it was found that the funds had been transferred to Morton's hedge fund, Camshaft Capital. The court ordered Morton's arrest, stating that he had shown contempt for the court and failed to cooperate with the investigation. Morton could also face fines of $10,000 per day until he complies with court orders.

Order maintains status quo: Byju's after US bankruptcy court orders hedge fund manager arrest

Business Today

Business Today · 1y ago

Order maintains status quo: Byju's after US bankruptcy court orders hedge fund manager arrest

Byju's, the embattled edtech company, has responded to an order from a US court directing the arrest of hedge fund manager William Cameron Morton for alleged involvement in concealing $533 million from Byju's creditors. Byju's stated that the order maintains the status quo as they have always maintained that the funds are safely held in one of their subsidiaries. The court also issued a preliminary injunction to freeze the loan proceeds and an arrest warrant for Morton. The order prohibits further transfer or use of the funds, while creditors believe this indicates potential fraud by Byju's.

Order maintains status quo: Byju's after US bankruptcy court orders hedge fund manager arrest

Business Today

Business Today · 1y ago

Order maintains status quo: Byju's after US bankruptcy court orders hedge fund manager arrest

The US court order directing the arrest of hedge fund manager William Cameron Morton for allegedly helping Byju's conceal $533 million from its creditors has maintained the status quo for the edtech company. Byju's stated that the funds are safely parked in one of its subsidiaries, which aligns with their previous claims. The court denied the request for the funds to be deposited into court, but issued a preliminary injunction to freeze the loan proceeds belonging to Think & Learn Pvt. The court also issued an arrest warrant for Morton, further complicating the situation.

BYJU’S Claims US Court Denied Relief To Creditors

Inc42 · 1y ago

BYJU’S Claims US Court Denied Relief To Creditors

BYJU'S, an Indian edtech major, has accused its TLB lenders of creating fake narratives to tarnish its image. This comes after a US bankruptcy court issued orders for the arrest of a hedge fund manager for allegedly helping BYJU'S hide $533 million. BYJU'S claims that the judge denied the lenders' request for a mandatory injunction to deposit the funds with the court, and instead issued an interim injunction maintaining the status quo. The company alleges that the lenders are working with certain large investors to exploit the situation and extract monetary concessions.

BYJU’S Says Funds Parked In High-Security Fixed Instruments As Lenders Brouhaha Over ‘Missing’ $533 Mn

Inc42 · 1y ago

BYJU’S Says Funds Parked In High-Security Fixed Instruments As Lenders Brouhaha Over ‘Missing’ $533 Mn

Edtech startup BYJU'S has responded to allegations that it parked $533 million from its term loan B in an obscure hedge fund. The company stated that its offshore subsidiary remains the beneficiary of the funds, which have been invested in high-security fixed income instruments. BYJU'S denied reports suggesting they were no longer the owner of the funds and clarified that there are no requirements to maintain cash as collateral under the credit agreement. This comes amid an ongoing legal battle between BYJU'S and its lenders over missing funds.

US hedge fund exec left with ₹2 lakh to defend himself in BYJU'S case

Inshorts · 11m ago

US hedge fund exec left with ₹2 lakh to defend himself in BYJU'S case

William Morton, the hedge fund manager accused of helping BYJU'S hide $533 million from lenders, told a US court he is left with less than $3,000 (around ₹2 lakh) to defend himself. He requested the court to not let his lawyers quit. He also stated that BYJU'S had pledged to pay his legal bills but quit funding his lawyers.

BYJU’s Bankruptcy Case: US Court Pushes To Retrieve ‘Missing’ $533 Mn

Inc42 · 1y ago

BYJU’s Bankruptcy Case: US Court Pushes To Retrieve ‘Missing’ $533 Mn

US Bankruptcy Judge in Wilmington, Delaware, has lifted the arrest warrant for William C. Morton, founder of Camshaft Fund, after he transferred $533 million of loan proceeds from BYJU's to a UK lender and then to an unnamed non-US entity linked to BYJU's.

Byju’s loan dispute: US court orders hedge manager’s arrest

The Arc Web

The Arc Web · 1y ago

Byju’s loan dispute: US court orders hedge manager’s arrest

William Morton, the manager of hedge fund Camshaft Capital, has been ordered to be arrested by a US judge. The judge has also imposed a $10,000 daily fine until Morton reveals the location of $533 million that Byju's had deposited in the fund. The money is part of a $1.2 billion loan that Byju's raised in 2021, and there have been court battles over repayment since Byju's defaulted on an interest payment. Morton, refusing to disclose the location, claims concerns for his safety and remains outside the US. Byju's is facing legal disputes on various fronts.

US bankruptcy court issues ruling in favour of Byjus term loan lenders

Thehindubusinessline

Thehindubusinessline · 1y ago

US bankruptcy court issues ruling in favour of Byjus term loan lenders

A United States bankruptcy court has granted a preliminary injunction in favour of Byju's Alpha, Inc. against Riju Ravindran, Inspilearn LLC, and Camshaft Capital Fund, LP and its affiliates. The court ordered Byju Raveendran and Divya Gokulnath to comply with its ruling, as they were found to be working in concert with the defendants. The defendants and the individuals involved are now prohibited from transferring or using the $533 million loan proceeds that were previously held by Camshaft Capital Fund, LP and transferred to an undisclosed offshore trust. The court also ordered the arrest of William Morton, founder of Camshaft Capital Fund, LP, for refusing to provide information about the transfer of funds. The term loan lenders are committed to recovering the missing $533 million.

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