US Bankruptcy Court rules in favour of Byju’s term loan lenders, prohibits use of loan proceeds
A United States Bankruptcy Court has ruled in favour of Byju’s term loan lenders, as per a release on March 15 from the steering committee of the ad hoc group of term loan lenders.
Judge John T Dorsey of the United States Bankruptcy Court for the District of Delaware has issued an order granting a preliminary injunction in favour of BYJU’s Alpha, Inc. against Riju Ravindran, Inspilearn LLC, and Camshaft Capital Fund, LP and its affiliates,” as per the release. The Court also found that Byju Raveendran and Divya Gokulnath are working in concert with the Defendants and ordered them to comply with its ruling.
According to the order, defendants are prohibited from further transferring or using any of the $533 million in loan proceeds previously held by Camshaft Capital Fund, LP and subsequently transferred to an unnamed, unknown offshore trust.
The Court confirmed that the transfer of funds from BYJU’s Alpha, and their continued concealment, likely constitutes a fraudulent conveyance, the statement added.
This is a breaking story, more updates are awaited…
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Published: 15 Mar 2024, 11:18 AM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.