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Tag: Byju's

Loan-Default Claims: Byju’s lenders accused of using bogus loan-default claims
5Aug By adminNo Comments
Business

Loan-Default Claims: Byju’s lenders accused of using bogus loan-default claims

Lenders to one of India’s hottest tech startups, Byju’s, created bogus default claims tied to a $1.2 billion loan as part of a scheme to gain control of the education-technology provider, the firm’s lawyer told a judge.The distressed-debt lenders are “playing hardball” to create leverage in negotiations to restructure the loan and causing problems for Byju’s executives, Sheron Korpus, a lawyer for the Bengaluru-base company, said at a hearing in state-court in Delaware Friday.Lenders, including US investment firms Redwood Investments LLC and Silver Point Capital LP, are “making extortionate demands” of Byju’s, putting the ed-tech firm “under a lot of pressure,” Korpus told Delaware Chancery Court Judge Morgan Zurn. Byju’s wants the judge to rebuff the lenders’ default claims. Zurn said sh...
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Byju’s lenders accused of using bogus loan-default claims to gain control
5Aug By adminNo Comments
Business

Byju’s lenders accused of using bogus loan-default claims to gain control

By Jef Feeley and Reshmi Basu Lenders to one of India’s hottest tech startups, Byju’s, created bogus default claims tied to a $1.2 billion loan as part of a scheme to gain control of the education-technology provider, the firm’s lawyer told a judge.   The distressed-debt lenders are “playing hardball” to create leverage in negotiations to restructure the loan and causing problems for Byju’s executives, Sheron Korpus, a lawyer for the Bengaluru-base company, said at a hearing in state-court in Delaware Friday. Lenders, including US investment firms Redwood Investments LLC and Silver Point Capital LP, are “making extortionate demands” of Byju’s, putting the ed-tech firm “under a lot of pressure,” Korpus told Delaware Chancery Court Judge Morgan Zurn. Byju’s...
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Manipal Group chairman Ranjan Pai in talks to invest in Byju’s-owned Aakash
2Aug By adminNo Comments
Business

Manipal Group chairman Ranjan Pai in talks to invest in Byju’s-owned Aakash

Manipal Group Chairman Ranjan Pai is in early discussions to invest in Byju’s-owned Aakash Educational Services Limited (AESL).   According to sources in the know, Byju’s founder and Chief Executive Officer Byju Raveendran, who owns a 30 per cent stake in Aakash, is expected to partially offload his holding to Pai for $80-90 million (about Rs 650-740 crore).   Raveendran may use the money to repay a large part of the Rs 800 crore loan that Byju’s raised from US-based investment firm Davidson Kempner Capital Management in May, after facing a ‘technical default’, the sources said.   Pai, one of Byju’s early investors, had first invested in the edtech start-up in 2011 through his venture capital fund Aarin Capital. Aarin eventually exited t...
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Star founder Raveendran broke down in tears as crises engulfed Byju’s
26Jul By adminNo Comments
Business

Star founder Raveendran broke down in tears as crises engulfed Byju’s

By Anto Antony In late April, Indian officials in plainclothes raided the Bengaluru offices of Byju’s, seizing laptops and publicly linking the world’s most valuable education-technology startup with possible foreign exchange violations.   An ocean away, Byju Raveendran, the firm’s eponymous founder and chief executive, paced his condo in Dubai, downing cups of black coffee and fielding calls from top investors. With a planned $1 billion equity fundraise from Middle Eastern investors still in limbo, Raveendran broke down in tears defending his company, according to people who attended the calls. Raveendran had been in crisis mode for months. Apart from the raid by India’s financial crime-fighting agency, his once high-flying tutoring startup failed to fil...
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