Delaware court rejects Byju's lenders' plea, freezes fund

The Delaware court has denied the request from Byju's USD 1.2 billion Term Loan B lenders to impose a mandatory injunction against the company's US entity. This decision was confirmed by Byju's Alpha counsel on Friday.

Despite the rejection of the injunction, the court has taken steps to safeguard the funds in question. Byju's is now prohibited from further transferring or using the USD 533 million in loan proceeds, which the lenders claim is currently held at an undisclosed location.

The steering committee representing the ad hoc group of term loan lenders for Byju's USD 1.2 billion term loan B has stated that the court acknowledged the collaboration between Byju Raveendran, Divya Gokulnath, and the defendants—Riju Ravindran, Inspilearn LLC, and Camshaft Capital Fund, LP. Consequently, the court has instructed them to comply with its ruling.