According to PTI, US lenders represented by Glas Trust have contested Byju's founder Byju Raveendran's claim that the company's verified debt amounts to only Rs 20 crore. They assert that Byju's must repay the entire USD 1.2 billion term loan B (TLB) plus interest. This claim follows legal actions taken by Glas Trust in both the US and India.
The lenders allege that Byju's Alpha, a group firm, secured USD 1.2 billion in a loan and improperly moved USD 500 million out of the US, violating loan terms, as per media reports. The financial issues for Byju's began when US-based lenders sought to recover the debt, leading to a dispute over the loan’s acceleration and repayment terms, as per media reports.
According to media reports, the lenders' panel has criticised Byju's management, citing the resignation of key personnel and difficulties in accounting for the USD 500 million. They maintain that Byju's cannot disqualify any lenders, a power they claim rests with Timothy R. Pohl, the sole director of Byju's Alpha, Inc.
According to media reports, Byju's argues that Glas Trust's claim is invalid and insists that the contract allows them to disqualify lenders. They also challenge the lenders to prove their status in court. The lenders' panel counters that the validity of their claim is independent of any lender’s financial status or trading prices.
