Byju’s founder Byju Raveendran is preparing to file a $2.5 billion damages claim in a US court, escalating his legal fight with Glas Trust, the lender trustee overseeing the company’s troubled $1.2 billion term loan.
The move comes just days after a US bankruptcy court issued a default judgment ordering Raveendran to pay more than $1 billion, citing his failure to cooperate with efforts to trace $533 million from the 2021 loan proceeds. The court noted repeated non-compliance and absence from hearings.
Raveendran has disputed the ruling, arguing that the court denied him the 30-day extension he had requested to appoint a US legal team. He has also filed new documentation, claiming it disproves allegations that the disputed “alpha funds” were diverted for personal use.
According to him, the entire $533 million is traceable, with $479.6 million routed through loan arranger OCI, then via Revere Capital, before reaching Byju’s entities and ultimately Think & Learn Pvt Ltd—the parent company. He maintains the funds were used to finance major acquisitions, including Aakash Educational Services, during the company’s aggressive expansion phase.
Raveendran says he will also appeal the default judgment while pursuing the countersuit against Glas Trust and associated parties.
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