BYJU's Defaults on Term Loan B: Delaware Supreme Court Affirms

BYJU's US-based lenders on Tuesday said the Delaware Supreme Court affirmed the previous ruling by Delaware Court of Chancery's and said an event of default had occurred under the credit agreement and entitled BYJU's lenders and their administrative agent, GLAS Trust for action against the company.

BYJU's, from US-based lenders, had raised USD 1.2 billion Term Loan B (TLB) -- a loan which is issued by institutional investors, through its holding company Byju's Alpha. The lenders through their administrative agent GLAS Trust approached Delaware Court of Chancery alleged default in the payments under the loan agreement and sought early payment of the USD 1.2 billion TLB. Think and Learn, which owns BYJU's brand, had contested the claim but the Delaware Court of Chancery ruled in favour of the lenders.