Baiju filed a lawsuit against the lenders of its $1.2 billion term loan B, which it raised in November 2021 in the US. The company also said it will not pay any further interest until the case is resolved.
“Byju’s has taken the decisive step of filing a complaint in the New York Supreme Court challenging the acceleration of its $1.2 billion Term Loan B (TLB) and disqualifying a significant purchaser, Redwood Capital Management, against the terms of the TLB. The debt portion is primarily during trading in distressed debt,” the company said in a statement.
The company also said it took the action following a series of “predatory tactics” by lenders led by Redwood. According to Byzu’s, these tactics included threats to seize the company’s assets and demands for quick repayment of debts.
