The problems of BYJU’S, one of India’s biggest startups, are increasing. After coming under the target of law enforcement agencies in India, now this education technology company is going to get into legal trouble in America. Litigation in the US court is starting at a time when Byju’s is facing an unprecedented debt crisis.
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Byju went to court on this basis
Byju has defaulted in repayment of some lenders (BYJU’S Default). Byju says that he has done this intentionally. The company told about this on Tuesday that it has stopped payment of debt of $ 1.2 billion to some American lenders. Edutech Startup alleges that American lenders were adopting tricks to harm it. Citing these allegations, the company has now taken the entire matter to the US court.
Default on such a huge payment
In a lawsuit filed against American investment management company Redwood, Indian startup Byju’s has said that the American company has bought a part of its stranded debt, which is against the terms of its term loan. Byju’s has also not paid $40 million in lieu of interest on the $1.2 billion loan, though it was supposed to deposit the amount by Monday. This is how startup has defaulted.
Lenders have sued Byju
Byju has said in a statement that it has decided to stop the payment of $ 1.2 billion TLB and in this regard it has filed a lawsuit in the top court of New York. She said that she will not make any payment until the matter is settled by the court. Earlier, Byju’s lending firm GLAS Trust Company and investor Timothy R. Paul had filed a lawsuit against Byju’s US units for delay in payment. In this case, allegations were leveled against Byju Alpha and Tangible Play.
Byju has made this allegation
American lenders said that both these firms sent an amount of $ 500 million from Byju Alpha to another company. Both these firms are subsidiaries of Byju’s parent company Think and Learn Pvt. Byju’s alleges that its lenders illegally pressured it to repay the $1.2 billion loan early in March and also took control of Byju’s Alpha.
Byju’s still ready for talks
Byju’s says that it is still open to talks with its lenders, but for this the American lenders will have to withdraw their steps and follow the terms of the term loan. Byju’s has been facing financial crisis since the Kovid-19 pandemic. The company has tried several times to restructure its loans after that, but has not been successful. The lenders had taken control of Byju’s US unit after talks failed to yield any results.
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