Seeking Justice: Byju's Takes Legal Action Against 'Predatory' Lenders

-

 


Indian edtech giant Byju's has filed a complaint in the New York Supreme Court to challenge the acceleration of the $1.2 billion term loan B. Byju's accuses Redwood, a lender, of conducting predatory tactics and demands the disqualification of Redwood. Byju's claims that Redwood purchased a significant portfolio of the loan with the intention of making windfall gains, primarily trading in distressed debt. Byju's stated that it will not make any payments to the term loan B lenders until the dispute is resolved.

Byju's decision to take legal action follows the lenders' alleged unlawful acceleration of the loan term based on certain non-monetary and technical defaults. Byju's further alleges that the lenders, through their agent GLAS Trust Company, took unwarranted enforcement measures, including seizing control of Byju's Alpha and appointing their own management. The lenders also initiated litigation in Delaware, which Byju's claims is an attempt to lend credibility to their actions. Byju's asserts that the Delaware court rejected the lenders' attempt to deprive Byju's of its contractual right to disqualify lenders engaged primarily in opportunistic trades.

Byju's has issued a notice seeking the disqualification of the Redwood entities, which, if effective, would restrain Redwood from exercising critical rights under the term loan B. Byju's states that it had previously refrained from utilizing the disqualification clause, instead seeking an amicable resolution with Redwood. However, due to the lack of progress, Byju's believes it has no choice but to take legal action.

Comments

Post a Comment

Popular posts from this blog

Empowering Complex Payments: Payrails Secures $14.4M for its Advanced Operating System

-
Image
  Enterprises and marketplaces operating across multiple geographies and products have long relied on a hodgepodge of third-party services cobbled together by teams of engineers. These makeshift solutions, akin to Dr. Frankenstein's creations, often suffer from bugs and missing functionality. At worst, their complexity can even conceal malicious activities. Recognizing this disparity, three payments engineers came together to establish Payrails, a startup that has developed a framework for building and operating stable enterprise payment services. Today, the company announces a funding round of $14.4 million, driven by leading investor EQT Ventures, along with participation from General Catalyst, Andreessen Horowitz, and HV Capital. This "seed extension" follows the original seed round of $6.4 million, led by A16Z and HV Capital, which we covered last year when Payrails emerged from stealth mode. Although the startup does not disclose its valuation, CEO Orkhan Abdullayev ...
Read more

Bridging the Gap: Minoa SaaS Sales Platform Addresses the Rising Demand for Remote Collaboration

-
Image
  The COVID-19 pandemic has disrupted various aspects of business, including the way software-as-a-service (SaaS) companies sell their products. With social distancing measures in place, in-person meetings were replaced by virtual platforms like Zoom and Microsoft Teams. Surprisingly, both vendors and buyers found that virtual meetings could be productive, leading to the adoption of remote practices even as COVID restrictions ease. Recognizing the gap in existing sales tools for online meetings, Richard Einhorn and Max Elster founded Minoa in 2022 to cater to the growing trend of remote B2B sales. Minoa is a sales platform designed to help SaaS vendors and their customers track the lifecycle of a deal asynchronously. It offers tools for value management, quoting, pricing, and more. What sets Minoa apart from other tools is its focus on including customers in the sales platform, unlike many incumbents that primarily serve vendors. As companies incorporate more specialized SaaS servi...
Read more

Revolutionizing EdTech: Byju's Leaps Forward with Transformer Models in AI Endeavors

-
Image
  Byju's, the edtech giant in India, has introduced three transformer models as part of its "Wiz" suite to enhance its educational services and personalize the learning experience for students. The models leverage AI to support learning and address knowledge gaps. The first model, Badri, predicts when learners might struggle with specific concepts and offers recommendations to address the gaps. MathGPT helps students solve math problems using analogies and visual aids, while TeacherGPT serves as an AI-powered assistant, providing personalized guidance and grading responses. Byju's AI model incorporates students' interests to make learning more engaging. For example, it can use cricket analogies to explain complex concepts to a cricket enthusiast. The transformer models have been trained on the vast amount of data generated by Byju's student base and have an accuracy rate of around 87%. They are designed to align with the respective curriculum and operate withi...
Read more