US Court Backs Byju’s Lenders Over $1.2 Bn Loan Default
The $1.2-bn loan was provided to Byju’s by a syndicate of 37 financial institutions
New Delhi: A US court has upheld an earlier ruling that found embattled edtech firm Byju's in default on its $1.2-billion Term Loan B.
The Delaware Supreme Court upheld the ruling in favour of Byju's lenders represented by Glas Trust LLC. As a result of the ruling, the Court of Chancery's order that held Byju's to be in default of $1.2 Billion has attained a stamp of approval by Delaware's highest court of appeal.
The $1.2-billion loan was provided to Byju’s by a syndicate of 37 financial institutions. In August 2023, the Delaware Court of Chancery ruled in favour of Glas, stating that the lenders were within their rights to enforce the agreement.
For collateral, Think and Learn Pvt Ltd's Delaware subsidiary, Byju's Alpha, had pledged 100 per cent of its equity as collateral for the term loans. Later, Glas delivered a notice of default to Byju's.