US-based creditors of BYJU’S have pushed back against founder Byju Raveendran’s claim that the verified debt on the beleaguered edtech startup is INR 20 Cr only
The lenders represented by Glas Trust have argued that Raveendran and BYJU’S interim resolution professional cannot disqualify any term loan lender and that the edtech firm is "obligated" to pay the entire $1.2 Bn term loan B, along with interest
They further alleged that BYJU'S has not paid any contractual dues in more than 17 months
US-based creditors of BYJU’S
have pushed back against founder Byju Raveendran’s claim that the verified debt on the beleaguered edtech startup is only INR 20 Cr, saying that it will have to repay the entire $1.2 Bn term loan B, along with interest.
The lenders represented by Glas Trust have argued that Raveendran and BYJU’S interim resolution professional cannot disqualify any term loan lender, and even if they did, the edtech firm “would still be obligated to repay the full amount of the loan plus interest,” ET reported.
The statement comes on the heels of Raveendran’s claims that BYJU’S interim resolution professional had verified debt claims worth INR 20 Cr only and that the company may not have to pay any money to the US-based lenders represented by Glas Trust due to the latter’s “current behaviour”.
The US-based lenders of BYJU’S further alleged that the edtech firm has not paid any contractual dues in more than 17 months. According to Glas Trust, BYJU’S still owes the US-based lenders dues worth INR 11,432 Cr ($1.36 Bn).
“Majority lenders today hold more than 64% of the TLB…Byju’s claim that he either does not know who the lenders are or intends to pay primary lenders is illogical and false. He has not paid any principal or interest – be it to majority lenders or those who purchased the loans in the secondary market,” ET quoted the lenders as saying.
It is pertinent to note that Glas Trust has also moved the Supreme Court, challenging a ruling by the National Company Law Appellate Tribunal (NCLAT) that had stayed the bankruptcy proceedings against BYJU’S. The SC has listed the matter for hearing on September 17.
After its ouster from the committee of creditors, Glas Trust had also filed a petition with the National Company Law Tribunal, seeking removal of BYJU’S interim resolution professional Pankaj Srivastava.
While the US-based lender had also sought a stay on further meetings of the CoC amid the ongoing insolvency proceedings against BYJU’S, the tribunal refused to grant it interim relief, citing the August 21 Supreme Court order that allowed its constitution.
The NCLT asked Glas Trust to file a fresh plea challenging its exclusion from the creditor’s committee if it wished to pursue the matter.
Glas Trust is not the only creditor turning the heat up on BYJU’S. Aditya Birla Finance has also moved the NCLT, reportedly alleging that he committed fraud by wrongfully labelling the lender as an ‘operational creditor’ instead of a ‘financial creditor’.
