BYJU'S Financial Battle: The $1.2 Billion Term Loan B Controversy

US lenders, represented by Glas Trust, dispute BYJU's founder Byju Raveendran's claim of company debt being Rs 20 crore. They assert BYJU's must repay the full $1.2 billion Term Loan B. Legal battles in the US and India ensue, with allegations of breached loan agreements and financial mismanagement.

US lenders represented by Glas Trust have strongly disputed BYJU's founder Byju Raveendran's assertion that the company's verified debt is only around Rs 20 crore. The lenders claim that the beleaguered edtech firm is obligated to repay the entire USD 1.2 billion Term Loan B along with accrued interest.

Just a week ago, Byju Raveendran, the founder of Think and Learn (TLPL) and owner of the BYJU'S brand, stated that insolvency proceedings only verify debt at Rs 20 crore, suggesting no further payments are necessary to US lenders. However, Glas Trust and a steering committee of term loan lenders argue that neither Byju nor the IRP have the authority to disqualify any term loan lender and that BYJU's must repay the full loan amount plus interest.

The financial turmoil for BYJU'S became public as US-based lenders initiated legal action to recover the massive loan, alleging that BYJU'S Alpha misappropriated USD 500 million, breaching loan agreements. The lenders' panel also pointed to mass resignations among BYJU's key management, adding to their concerns. BYJU'S, however, maintains that the acceleration of loan repayment by Glas Trust in March 2023 was premature and insists on its right to disqualify lenders under the credit agreement, countering the panel's allegations of financial misconduct and legal missteps.

(With inputs from agencies.)