Kept $533 mn in fixed income assets: Byju’s

livemint.com:

hedge fund. Glas Trust Co., the trustee representing lenders who had extended a loan of $1.2 billion to the world’s most valuable education technology startup in November 2021, told a Florida court on 7 September that Byju’s transferred $533 million to Camshaft Capital Fund, a Miami-based hedge fund, allegedly established by a 23-year-old with no training or experience in investing. The lenders also told the court that the official address of the hedge fund in its regulatory filings is a US restaurant chain, IHOP.

Bloomberg reported on Glas Trust’s filing against Camshaft on Tuesday. Glas Trust is also involved in a legal case against two of Byju’s US entities in a New York court as it seeks to recover outstanding funds. However, Byju’s denied any wrongdoing and clarified that it is the “beneficiary owner of the funds".

“As a commercially prudent borrower and like any large corporate treasury, Byju’s Alpha made investments in a multi-hundred billion dollar fund with high-security fixed income instruments," a Byju’s spokesperson said. “Our credit agreement with lenders does not prohibit or restrict the movement or investment of monies disbursed. There is no requirement for Byju’s to maintain cash as collateral.

As a matter of fact, the Delaware court ruling in June this year rejected the lenders’ application for information in relation to the amount in question, i.e. part of the funds received by Byju’s Alpha, the borrowing entity under the TLB (term loan B)." The management also spoke to several investors, providing them with details of the transactions and the location of the funds. “Camshaft was used as a wealth adviser," a person in the know on the matter said, adding that the $533 million was moved to a reputable