US lenders slap case on Byju’s for wrongful acts

Edtech major Byju’s on Friday said it has not defaulted on repayment of loans raised from American lenders and $500 million worth of loans were transferred from the group's US entities to fund growth plans.

The statement comes against the backdrop of lender Glas Trust company and investor Timothy R Pohl filing a lawsuit against Byju's US-based entities for certain alleged wrongful acts. They have sued Byju’s Alpha and Tangible Play for moving $500 million out of Byju’s Alpha.

The two entities are part of Think and Learn Private, the parent of Byju’s. In a statement on Friday, Byju’s said that Byju’s Alpha is a non-operative US entity set up to receive the Term Loan B, which were provided to the company by institutional investors.

However, specific details about the Term Loan B were not disclosed by the edtech major. "The litigants have made bewildering claims that Byju’s 'moved' $500 million from Byju’s Alpha, insinuating that these acts were somehow wrongful.