Edtech behemoth Byju’s is being sued for allegedly hiding $500 million (₹4,138 crore) by lenders, who are also seeking control of the company to safeguard their interests.
What Happened? The lawsuit was filed in a Delaware court against Byju's Alpha, its director, Riju Ravindran, and Tangible Play Inc by creditor Glas Trust Company, Bloomberg reported. The two companies being sued are units of Think and Learn Private, controlled by Byju Raveendran.
The lenders argue that they have the right to put their representative, Timothy R. Pohl, in charge of the edtech firm because of a default earlier this year.
Byju's has been trying to restructure a $1.2 billion (₹9,926 crore) term loan when government investigators inspected company offices in April. The firm has been eyeing an IPO for its tutoring unit for several years.
The Indian firm said it was likely to receive "a large capital infusion" in about two weeks, which will allow Byju's Alpha to pay down the term loan it owes creditors, the firm’s lawyer said in court.
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