The Delaware Supreme Court has confirmed a previous ruling stating that edtech giant BYJU’s has defaulted on its $1.2 billion Term Loan B, as reported by US-based lenders on September 24. In light of this decision, lenders announced they are entitled to take action against the company.
BYJU’s, however, countered that the ruling does not affect ongoing legal proceedings in India nor does it impact the company’s rights regarding loan acceleration or the legal standing of GLAS Trust, the lenders’ administrative agent. The firm stated, “The recent ruling by the Delaware court does not influence ongoing legal matters in India. The Delaware Supreme Court merely upheld a limited decision regarding the appointment of a nominee as director of BYJU’S Alpha Inc., a shell company.”
The company further clarified that the issue of loan acceleration and the enforcement actions initiated by GLAS Trust are currently under review by the New York Supreme Court, which holds jurisdiction over the Credit Agreement.
Earlier in the day, US-based lenders announced that the Delaware Supreme Court upheld the ruling from the Delaware Court of Chancery, affirming that an event of default had occurred under the credit agreement. This ruling allows the lenders, through their administrative agent GLAS Trust, to pursue early payment of the $1.2 billion Term Loan B.
BYJU’s had raised this loan through its holding company, Byju’s Alpha, and Think and Learn, which owns the BYJU’s brand, had contested the claim. Ultimately, the Delaware Court of Chancery ruled in favor of the lenders.
