Sun Sep 15 17:02:13 UTC 2024: ## BYJU’S and US Lenders Clash Over $1.2 Billion Debt: Who’s Telling the Truth?
**Bangalore, India** – The financial battle between edtech giant BYJU’S and its US lenders continues to escalate, with both sides accusing each other of misleading claims.
US lenders represented by Glas Trust have vehemently refuted BYJU’S founder Byju Raveendran’s assertion that the company’s verified debt is merely Rs 20 crore (~$2.4 million). The lenders maintain that BYJU’S must repay the full $1.2 billion Term Loan B along with interest.
Raveendran had previously stated that under insolvency proceedings, the company owes a significantly smaller amount, implying that the US lenders’ claims are inflated.
However, the lenders’ panel has countered this, stating that neither Byju nor the Insolvency Resolution Professional (IRP) has the authority to disqualify any lender. They assert that BYJU’S remains obligated to pay the entire loan amount regardless of any attempts to downplay the debt.
Adding fuel to the fire, the lenders have accused BYJU’S of mismanaging funds, alleging that the company moved $500 million out of the US in breach of loan agreement norms. The lenders also point to the exodus of key personnel from BYJU’S, including the CEO, CFO, and General Counsel, as evidence of the company’s financial instability.
BYJU’S, meanwhile, maintains that the lenders wrongly accelerated the loan in March 2023, despite the repayment deadline not being until November 2026. The company further asserts that the IRP has not accepted the $1.35 billion debt claim by Glas Trust during ongoing insolvency proceedings.
The back-and-forth accusations have cast a dark cloud over BYJU’S, once considered India’s most valuable edtech firm. The situation underscores the complexities of international financial agreements and the precarious financial position of the embattled edtech giant.
First Piper 