Byju's to file $2.5-bn suit against Glas Trust

BYJU'S FOUNDER BYJU Raveendran is preparing to file a $2.5-billion damages claim, alongside new evidence in a US court that he says disproves GLAS Trust’s allegations that $533 million in ‘Alpha Funds’ was diverted by the company’s founders.

- PRESS TRUST OF INDIA

A US bankruptcy court had, in a default ruling last week, ordered Raveendran to pay more than $1 billion, saying that the former corporate star, who set up the domestic edtech and tutoring company, had refused to cooperate with legal efforts to locate almost half the proceeds from a $1.2-billion US term loan made in 2021.

Raveendran, however, contests the grounds, saying the court did not give him the 30 days he had sought to arrange a US attorney to argue the case.

He vowed to appeal against the order and, in parallel, will bring a $2.5-billion damage suit against GLAS Trust and those assisting it in a separate US court.

HE SAYS THE entire $533 million is fully accounted for, with the majority, $479.62 million, being routed from OCI - the loan arranger - to Revere Capital and then to Byju's entities and finally to Think & Learn (TLPL) the parent company.

TLPL used the money to pay for the $3-billion acquisitions, including Aakash Educational Services, in that year.