New Delhi : The troubles of edutech company Byju's are not coming to an end. The Supreme Court of Delaware has taken a big decision regarding this company. The Supreme Court has clearly stated in its decision that Byju's has defaulted on term loan B.
Byju's US lenders said on Tuesday that the Supreme Court of Delaware upheld the decision of the Delaware Court of Chancery. In its decision, it said that there has been a default under the loan agreement and Byju's lenders and their administrative agent Glass Trust have the right to take action against the company.
demand for prompt payment
Byju's, through its parent company Byju's Alpha, had raised a 'Term Loan B' or TLB of US $1.2 billion from US lenders. 'Term Loan B' is a debt issued by institutional investors. The lenders, through their administrative agent Glass Trust, had filed a complaint in the 'Delaware Court of Chancery' alleging default in payment under the loan agreement and demanded early payment of TLB of US $1.2 billion.
Default in paying loan agreement
Think and Learn (which owns BYJU’S) had contested the claim, but the Delaware Court of Chancery had ruled in favour of the lenders. According to a statement by the steering committee of the ad hoc group of term loan lenders, BYJU’S founder and CEO Byju Raveendran and his brother Riju Raveendran have voluntarily admitted that BYJU’S has defaulted on repaying the loan agreement by October 2022.
violated the agreement
The committee said, “We are pleased that the Delaware Supreme Court has conclusively confirmed what we already knew: Byju’s knowingly and willfully breached and failed to honor the loan agreement.”
no statement issued
However, Byju's has not issued any immediate statement on this decision. US-based lenders had filed a claim of US $ 1.35 billion in Indian courts during the ongoing bankruptcy proceedings against the company through Glass Trust. In the latest statement, the lenders increased the amount of their claim to $ 1.5 billion.
(With agency input)
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