Byju Raveendran, the founder of the now-infamous EdTech company BYJU’S, allegedly attempted to secretly buy back a software company that an American trustee had taken over, using loan money he hid from American lenders.
This was an attempt by Byju Raveendran to recover control of his sinking company, which is currently facing bankruptcy in India and legal problems in the United States of America, reports Bloomberg based on recent court filings.
According to the report, Raveendran hid millions of dollars in loan proceeds with OCI Ltd, a United Kingdom-incorporated logistics company, while claiming that he spent the money.
He then allegedly recruited Nebraska businessman William R Hailer, a former political consultant, to buy out the US creditors of BYJU'S, to whom the company owes more than USD 1.2 billion.
Raveendran wired USD 11.25 million to Rose Lake Inc, a firm Hailer controlled for him to demonstrate to lenders that he was well-funded, after which the money was to be returned to Raveendran, Bloomberg reported.
To recall, lenders have been fighting BYJU’S in US state and federal courts for over a year. According to Bloomberg, lenders believe Raveendran concealed USD 533 million in loan proceeds that should have been paid back to creditors.
In India, BYJU’S is facing an insolvency action, with a court-appointed professional tasked with obtaining funds to repay creditors.
