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BYJU’S Alpha, a non-operational US entity with no employees, faces refutation from edtech giant BYJU’S regarding allegations of hiding $500 million. BYJU’S dismisses the claims made in the Delaware court as ‘bewildering’.
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Regarding the matter, the company issued a statement stating, “The recent order from a Delaware Court is an interim measure to preserve the current state of affairs concerning BYJU’S Alpha, which is a non-functional US entity created solely to receive the Term Loan B and does not have any employees.”
The company BYJU’S has responded to claims made by the litigants regarding the transfer of $500 million from BYJU’S Alpha. BYJU’S denies the allegations and states that the claims are bewildering and incorrect. Although BYJU’S admits to transferring the funds, it asserts that the transfer did not violate any Credit Agreement.
BYJU’S has clarified that the transferred funds were used for growth and expansion in its global operations. According to BYJU’S, the intention behind entering into the Term Loan B agreement was to utilize the raised funds for driving growth and expansion, allowing them to transfer and use the funds as needed. The company also emphasized that it has fulfilled all contractual payment obligations outlined in the Term Loan B agreement, without missing any payments. BYJU’S dismissed the allegations of default by the lenders, describing them as minor technical and non-monetary issues.
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Glas Trust Company and investor Timothy R. Pohl have filed a lawsuit against BYJU’S Alpha, its director Riju Ravindran, and Tangible Play Inc., which are all part of Byju Raveendran’s Edtech empire. The allegations of concealing $500 million from lenders emerged during a Delaware court hearing, where BYJU’S Alpha is engaged in a legal dispute with its lenders over control of the company. Furthermore, the lenders argue that they have the right to appoint their representative, Timothy R. Pohl, as the company’s controller.due to BYJU’S earlier default.
During the court hearing, BYJU’S Alpha countered the lenders’ claims by stating that they were distressed debt investors seeking to profit from the company’s debt.
