US judge says Byju’s must freeze USD 533 million, lenders get major relief

A US judge on Thursday (March 14, 2024) directed that Indian tech agency Think & Learn Pvt, which operates schooling startup Byju’s, must freeze USD 533 million to guard the cash for disgruntled lenders who declare the money ought to be used to pay them, media reviews mentioned.

The resolution given by US Bankruptcy Judge John Dorsey is seen by specialists as a blended victory for lenders.

They earlier demanded the cash be positioned beneath the management of the federal courtroom to forestall the money from being spent by the Indian education-tech agency, which operates beneath the title Byju’s, reported Bloomberg.

The order given by the judge was aimed on the firm’s director Riju Raveendran.

He is the brother of Byju’s founder Byju Raveendran.

Ravindran’s lawyer, Sheron Korpus, argued that the lenders are at fault for any monetary woes suffered by Think & Learn, reported Bloomberg.

The firm was justified in retaining the cash away from the lenders as a result of that they had been overly aggressive in claiming the debt was in default, Korpus advised Dorsey.

Think & Learn is at the moment preventing the lenders in state courts in Delware and New York.

Lenders had beforehand seized management of a holding firm arrange by Think & Learn to subject USD 1.2 billion in debt. That unit, Byju’s Alpha, is now in chapter beneath Dorsey’s oversight, reported Bloomberg.