EdTech BYJU'S has defaulted on Term Loan B and this fact was confirmed during a ruling by the Delaware Supreme Court.
Today, Tuesday, September 24, the lenders of BYJU'S which are based out of the United States (US), stated that the Delaware Supreme Court confirmed the earlier ruling by the Delaware Court of Chancery's and under the credit agreement, a default had happened. This has enabled lenders of BYJU'S and their administrative agent, GLAS Trust for action against the company, stated a report by PTI.
USD 1.2 billion Term Loan B (TLB) was raised by BYJU'S from the US-based lenders. The loan was issued by institutional investors via Byju's Alpha, its holding company.
Through their administrative agent GLAS Trust, the lenders took to the Delaware Court of Chancery alleging default in the payments under the loan agreement and sought early payment of the USD 1.2 billion TLB.
Though Think and Learn, under which BYJU'S brand functions, disputed the claim the Delaware Court of Chancery ruled in favour of the lenders.
As per a statement of the steering committee of the ad hoc group of term loan lenders, BYJU'S founder and CEO Byju Raveendran and his brother Riju Ravindran have voluntarily conceded that BYJU's was in default of credit agreement by October 2022.
"We are gratified that the Delaware Supreme Court decisively affirmed what we have known all along: BYJU's breached and defaulted on the credit agreement it knowingly and willingly entered into. Most notably, this ruling confirms that BYJU's was in default, which both Byju and Riju personally acknowledged when they signed multiple amendments to the credit agreement on BYJU's behalf from October 2022 to January 2023," the committee said, stated the PTI report.
A query sent to BYJU's did not elicit any immediate reply.
