The Delaware Supreme Court of America has upheld the decision to hold Byju's guilty of defaulting on a loan of 1.5 billion dollars. Due to this, the troubles of the edtech company Byju's, which is facing financial crisis, may increase. In fact, while giving the verdict, the Chancery Court had considered Byju's a defaulter of 1.2 billion dollars.
This decision has now been approved by the Delaware Court as well. Byju's lenders, through their administrative agent Glass Trust, filed a case in the 'Delaware Court of Chancery', in which they accused Byju's of not making payments under the loan agreement.
After the decision of the Delaware court, the lenders of Byju's can now ask for their entire money back. They can also take control of Byju's US company Byju's Alpha Inc.
Committee of term loan lenders said- Byju's deliberately violated the loan agreement According to a statement from the governing committee of the group of term loan lenders, Byju Ravindran, founder and CEO of Byju Ravindran and his brother Riju Ravindran have themselves admitted that Byju's had delayed loan payments till October 2022.
The committee said- We are pleased that the Supreme Court of Delaware has conclusively confirmed what we already knew. That Byju's knowingly violated the loan agreement and did not fulfill it.
Delaware court's decision has no effect on India's action Byju's has issued a clarification after getting a setback from the Delaware court. The company has said that the decision of the Delaware court will have no effect on the proceedings going on in India. The validity of the action of Glass Trust is still pending in the New York Supreme Court. Glass is not a member of the CoC in the insolvency process of Think and Learns and neither does Glass have any legal status in the US nor any rights in India.
In 2011, Ravindranath started his edtech company called Think and Learn.
5 big things that happened with Byju's in the past days
- Byju's shareholders last month voted to remove Ravindran from the post of CEO and also remove his wife Divya and brother Riju.
- In the month of December, Byju Ravindran had mortgaged his house as well as the houses of his family members to pay salaries to the employees.
- The Board of Control for Cricket in India initiated bankruptcy proceedings against Byju's. Byju's is accused of defaulting on payment of ₹158 crores.
- ED sent notice in FEMA violation case of more than 9,000 crores. FEMA was formed in 1999 regarding foreign currency flow.
- The property owner threw out the employees of the Gurugram office for not paying the rent. Their laptops were confiscated.
Graphics Source: VaskarAssets
