NEW DELHI: Byju’s on Tuesday said that it has filed a suit in the New York Supreme Court to challenge acceleration of $1. 2-billion term loan B(TLB) repayment.
The development comes aday after a deadline for Byju’s to make a $40-million quarterly interest payment on its $1. 2-billion loan lapsed. The edtech major said it “cannot be expected to” and has “elected not to” make any further payment to TLB lenders, including any interest until the dispute is decided by the court.
Byju’s said in early March, lenders unlawfully accelerated the TLB on account of certain alleged nonmonetary and technical defaults. “On the back of this unconscionable acceleration of the TLB, the TLB lenders undertook unwarranted enforcement measures including seizing control of Byju’s Alpha and appointing its own management,” the company said, claiming arecent move by the lenders to take the startup to a Delaware court didn’t fructify as the court rejected attempts by the lenders to deprive Byju’s of its contractual right to disqualify lenders engaged in opportunistic trades.
The company said its financial health remains robust and is willing to continue making payments under the TLB if the lenders withdraw their ill-conceived actions and honour terms of the agreement.
The development comes aday after a deadline for Byju’s to make a $40-million quarterly interest payment on its $1. 2-billion loan lapsed. The edtech major said it “cannot be expected to” and has “elected not to” make any further payment to TLB lenders, including any interest until the dispute is decided by the court.
Byju’s said in early March, lenders unlawfully accelerated the TLB on account of certain alleged nonmonetary and technical defaults. “On the back of this unconscionable acceleration of the TLB, the TLB lenders undertook unwarranted enforcement measures including seizing control of Byju’s Alpha and appointing its own management,” the company said, claiming arecent move by the lenders to take the startup to a Delaware court didn’t fructify as the court rejected attempts by the lenders to deprive Byju’s of its contractual right to disqualify lenders engaged in opportunistic trades.
The company said its financial health remains robust and is willing to continue making payments under the TLB if the lenders withdraw their ill-conceived actions and honour terms of the agreement.
