US lenders slap case on Byju’s for wrongful acts
Edtech major says it has not defaulted on loan repayments
Byju's likely to miss March 10 salary deadline for 20,000 employees as funds remain stuck
Edtech major Byju’s on Friday said it has not defaulted on repayment of loans raised from American lenders and $500 million worth of loans were transferred from the group's US entities to fund growth plans.
The statement comes against the backdrop of lender Glas Trust company and investor Timothy R Pohl filing a lawsuit against Byju's US-based entities for certain alleged wrongful acts. They have sued Byju’s Alpha and Tangible Play for moving $500 million out of Byju’s Alpha.
The two entities are part of Think and Learn Private, the parent of Byju’s. In a statement on Friday, Byju’s said that Byju’s Alpha is a non-operative US entity set up to receive the Term Loan B, which were provided to the company by institutional investors.
However, specific details about the Term Loan B were not disclosed by the edtech major. "The litigants have made bewildering claims that Byju’s 'moved' $500 million from Byju’s Alpha, insinuating that these acts were somehow wrongful.
