Delaware Supreme Court Confirms Byju’s Default on $1.2 Billion Loan Amidst Ongoing Insolvency Proceedings

The Delaware Supreme Court has upheld a ruling that edtech firm Byju’s defaulted on a $1.2 billion Term Loan B (TLB), validating claims made by US-based lenders. The lenders, represented by GLAS Trust, had approached the court alleging payment defaults under the credit agreement and sought early repayment. Byju’s contested the claims, but the court ruled in favor of the lenders, confirming the default and allowing them to take legal action.

Byju’s founder, Byju Raveendran, and his brother Riju had acknowledged the default in amendments signed between October 2022 and January 2023. The lenders have raised their claims to $1.5 billion, escalating the dispute during ongoing insolvency proceedings in Indian courts. The ruling entitles lenders to take control of Byju’s Alpha Inc. and exercise legal remedies. Lenders accuse Byju’s of deflecting blame and failing to disclose the whereabouts of $533 million in missing loan proceeds. A response from Byju’s is awaited.

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