Byju Ravindran, founder of edtech giant Byju, tried to use hidden loan proceeds to secretly repurchase US-based education software company Epic!, which had been taken over by an American trustee, according to a court filing.
Baiju Ravindran’s alleged attempt to gain control
Nebraska businessman William R. According to Heller, Ravindran is trying to regain control of his troubled education technology empire amid ongoing legal battles. Bloomberg informed.
Baiju’s conflict in the US and India
Byju is under court supervision both in India, where its parent company is based, and in the US, where some of its most valuable units are located.
Allegations of loan manipulation
According to Bloomberg Rabindran allegedly hired Heller, a former political consultant, to settle more than $1.2 billion owed to US creditors, the report said. The proposed plan involved swapping debt for ownership of Epic, which was trading at just 0.24 cents on the dollar! However, the effort failed, according to a filing with the US Bankruptcy Court in Delaware.
Testimony against Ravindran
In her court declaration, Heller accused Ravindran of exploiting her. “For the past several months, I have been used as a pawn in Byju’s manipulation of law,” Heller stated. He is set to testify on behalf of a trustee planning to sell Epic to raise funds for Baiju’s creditors.
Financial transactions under scrutiny
Heller disclosed that as part of a strategy to demonstrate financial stability to lenders, Ravindran wired $11.25 million to Rose Lake Inc., a company controlled by Heller. The funding originated from UK-based logistics firm OCI Ltd which secured a multi-crore loan that is now being pursued by US creditors.
Allegations of Misappropriation
Lenders alleged that Ravindra hid $533 million in loan proceeds for repayment purposes. While Ravindran has denied any wrongdoing, claiming his actions were a response to aggressive creditor tactics, creditors have filed suit in both US state and federal courts to reclaim the funds.
Widespread implications
In India, Byju is facing bankruptcy proceedings, with court-appointed professionals working to raise funds to pay creditors. The ongoing legal battles in both countries highlight the edtech giant’s precarious position as it struggles to stabilize its finances and operations.