Byju’s Comes Under Allegation Of Hiding $533 Million, Lenders Claim (Image: Linkedin.com/Byju's post)
Lenders of edutech giant Byju’s have alleged in a lawsuit that the company has hid $533 million in an obscure or little-known hedge fund. Lenders who are trying to recover the lost money, have come forward with the claim that in 2022, Byju’s have transferred money – more than half a billion dollars to Camshaft Capital Fund.
The investment firm which has received the money was founded by William C Morton, at the age of 23. As per the lenders, Morton’s Capital fund has received the huge amount of money regardless of the clear lack of investment training, the mint reported. Meanwhile, the edutech Byju’s have said that it has not been served with any lawsuit as part of the Florida court’s proceedings.
The Camshaft lawyer David Massey, in an emailed statement have said that, in the court filling, the “Camshaft vigorously denies the statements made in Glas Trust Company’s.”
Apart from saying, that they are not parties to these proceedings, the mint reported Byju’s statement, “This is the first that we are hearing of these proceedings
Additionally, we draw your attention to the Delaware court ruling in June this year, which rejected the lenders’ application for information in relation to the $500 million, a part of the funds received by BYJU”S Alpha, the borrowing entity under the TLB.
In any event, we wish to clarify that the Credit Agreement dated 24 November 2021 does not prohibit or restrict the movement or investment of monies disbursed thereunder. There is also no requirement for Byju’s to maintain cash as collateral. As a commercially prudent borrower, Byju’s Alpha has made investments in fixed income assets like any other large corporate treasury
The court filing appears to have been made prior to the latest loan repayment proposal. The parties continue to engage in negotiations to settle the dispute and we remain committed to an amicable outcome.”
In an earlier development, Byju’s had put up two of its businesses for sale in order to pay its term loan B lenders, the mint had reported with inputs from sources which chose to remain unidentified. The two business which were put up for sale are the reading platform Epic and the higher education platform, Great Learning. These businesses were acquired in the year 2021 as a part of building its $22 billion business.
