Byju's lenders start bankruptcy proceedings against its US assets

Byju's founders unlawfully diverted $533 million in loan proceeds, the whereabouts of which are still unknown, alleged the lenders

A group of US-based lenders has petitioned to place several assets of the education technology (edtech) company Byju’s into bankruptcy, saying the company is not paying its debts as they come due.

The ad hoc group of term loan lenders (lenders) of Byju’s Alpha Inc (borrower) $1.4 billion term loans said that certain holders of the term loans and GLAS Trust Company LLC (as administrative agent and collateral agent of term loans) have filed petitions pursuant to Chapter 11 of the US Bankruptcy Code.

This was done to initiate involuntary Chapter 11 proceedings against Epic, Neuron Fuel (DBA Tynker), and