US bankruptcy court pulls up Byju’s co-founder Riju Ravindran for concealing $533 mn

livemint.com:

This compounds the problems for the company that was once valued at $22 billion and has been reeling under several legal cases filed against it by its key global investors, vendors and bondholders. A company spokesperson did not immediately respond to queries from Mint. The ruling comes after a year-long legal battle between Think & Learn, the parent company of Byju’s and the group of bondholders holding term loan B bonds.

In 2021, Byju’s Alpha, Inc. was established as a US subsidiary of the company to receive proceeds of the term loan. In 2022, Byju’s Alpha, transferred $533 million in loan proceeds to Camshaft Capital Fund, LP, a hedge fund founded by William Morton.

In March 2023, Byju’s Alpha’s LP interest in Camshaft Capital Fund was transferred to Inspilearn LLC, and then again transferred to, and then redeemed by, a still undisclosed entity in February 2024. As per the lenders, the court further sanctioned Ravindran by precluding him from arguing, in the parties’ ongoing fraudulent transfer litigation, that the transfers that are the subject of that litigation were made for a legitimate purpose. “This sanction effectively renders Ravindran without a defense to those causes of action," it said.