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Funds from Term Loan B lying With Non-US Subsidiary, Says Byju's

OutlookIndia

OutlookIndia · 1y ago

Funds from Term Loan B lying With Non-US Subsidiary, Says Byju's

Edtech company Byju's has addressed allegations of misusing funds, stating that the disputed $1.2 billion Term Loan B proceeds are with a non-US subsidiary. Byju's maintains that the charges are unfounded and that its group entities are the rightful beneficiaries of the funds. Byju's Alpha, a special purpose vehicle (SPV), was initially created to receive the loan amount but has since transferred the funds to other subsidiaries. Byju's is currently involved in legal battles with lenders who filed insolvency petitions against the company.

Related News

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.

Byju's transfers $533 million to non-US subsidiary, Camshaft no longer in charge

Livemint

Livemint · 1y ago

Byju's transfers $533 million to non-US subsidiary, Camshaft no longer in charge

Edtech company Byju's announced that the $533 million it raised is in a 100% non-US subsidiary, and Florida-based Camshaft Capital Fund is no longer managing the funds. This follows disputes and allegations of concealment surrounding the funds, with potential legal consequences for Camshaft founder William Morton. Byju's clarified that the funds were transferred from the US subsidiary to another US subsidiary and finally to a non-US fund, denying any suggestion of funds being siphoned off. Byju's lenders are pursuing legal action to recover the money, while Byju's is confident in its ability to contest the acceleration of repayments.

BYJU’S will have to repay $1.2bn loan, not just ₹20cr: US lenders

Inshorts · 10m ago

BYJU’S will have to repay $1.2bn loan, not just ₹20cr: US lenders

BYJU'S will have to repay the entire $1.2-billion Term Loan B with interest and not just ₹20 crore which CEO Byju Raveendran said was the verified debt on the startup, US lenders said. "Neither Byju nor interim resolution professional have authority to disqualify any term loan lender," the lenders said. They added that almost all key personnel have abandoned BYJU'S.

Never Lent Any Money To BYJU’S, Claims IIFL Finance

Inc42 · 1y ago

Never Lent Any Money To BYJU’S, Claims IIFL Finance

IIFL Finance denies lending any funds to BYJU'S, contradicting BYJU'S claim of a INR 440.77 Cr loan in its FY21 financial statements. IIFL Finance called the mention an error by BYJU'S and confirmed no lending took place. BYJU'S faces challenges with two sets of lenders, Term Loan B (TLB) lenders and Davidson Kempner, over a $1.45 Bn loan. TLB lenders have postponed their legal battle, possibly for out-of-court negotiations, while BYJU'S and Davidson Kempner continue discussions on a loan covenant dispute settlement.

NCLAT Likely To Rule On BYJU’S-BCCI Roe On Aug 2

Inc42 · 1y ago

NCLAT Likely To Rule On BYJU’S-BCCI Roe On Aug 2

Yesterday, the NCLAT put off its decision on approving the INR 158 Cr settlement between BYJU'S and the BCCI. Meanwhile, a US Bankruptcy Court has ordered Riju Ravindran, brother of Raveendran (BYJU'S founder), to pay $10,000 a day until he assists in locating $533 Mn that his company allegedly hid from US lenders. The dispute is centered around BYJU'S $1.2 Bn Term B Loan from US-based lenders.

BYJU’S Saga: US Lenders Counter Debt Claim, Say The Edtech Must Repay Full $1.2 Bn Loan With Interest

Inc42 · 10m ago

BYJU’S Saga: US Lenders Counter Debt Claim, Say The Edtech Must Repay Full $1.2 Bn Loan With Interest

US creditors of BYJU'S are disputing the founder's statement regarding the verified debt of the edtech startup. The lenders argue that the company is obligated to pay the full $1.2 billion term loan B, along with interest. They also claim that BYJU'S has not paid any contractual dues in over 17 months.

SC Questions NCLAT’s Decision To Approve BYJU’S-BCCI Settlement

Inc42 · 10m ago

SC Questions NCLAT’s Decision To Approve BYJU’S-BCCI Settlement

The Chief Justice of India, DY Chandrachud, has revealed that the Supreme Court is contemplating returning the insolvency matter to the National Company Law Appellate Tribunal (NCLAT). This comes after the NCLAT's decision to pass an order based on the significant difference in the dues owed by BYJU'S to its Term Loan B lenders, Glas Trust, in comparison to the Board of Control for Cricket in India (BCCI). The decision follows a recent ruling by a US bankruptcy court, stating that BYJU'S had defaulted on its Term Loan B.

Byju's term-loan lenders kick off bankruptcy proceedings against its US assets

Inc42 · 1y ago

Byju's term-loan lenders kick off bankruptcy proceedings against its US assets

The ad hoc group of lenders for Term Loan B have filed petitions for bankruptcy against Epic!, Neuron Fuel, and Tangible Play. They claim that BYJU'S founders unlawfully diverted $533 million in loan proceeds. Riju Ravindran was found in contempt by the Delaware Court for refusing to disclose the location of the funds.

Ahead of US hearing, Byju’s says it is beneficiary owner of 533 mn fund parked in co subsidiary

Thehindubusinessline

Thehindubusinessline · 1y ago

Ahead of US hearing, Byju’s says it is beneficiary owner of 533 mn fund parked in co subsidiary

Byju's, the EdTech company, announced that its subsidiary, Inspilearn LLC, remains the beneficiary owner of the $553 million funds that are under scrutiny in a US court hearing. Byju's had previously stated that it was unable to pay employee salaries as the funds from a right issue had been locked due to a dispute with investors. The company clarified that the funds were transferred to Inspilearn LLC, a 100% subsidiary of Think & Learn, and denied allegations of any misappropriation. Byju's accused certain investors of spreading false narratives and pursuing unlawful actions against the company.

Byju's $1.2-billion loan dispute: Court finds board member in contempt

The Arc Web

The Arc Web · 1y ago

Byju's $1.2-billion loan dispute: Court finds board member in contempt

Riju Ravindran, the brother of Byju's founder, has been found in contempt of court by a US judge for not disclosing the whereabouts of $533 million in term loan proceeds. Lenders are seeking to locate the funds from a $1.2 billion loan taken out in 2021. The judge ruled that Ravindran's testimony was not truthful and that he either knows where the funds are or is intentionally avoiding obtaining the information. Byju's, an edtech company, is currently facing legal challenges from lenders demanding repayment.

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