Delaware Supreme Court Affirms BYJU's Loan Default, Lenders to Take Control

The Delaware Supreme Court has upheld a ruling that edtech firm BYJU's defaulted on a $1.2 billion Term Loan B. The decision empowers US-based lenders and their agent, GLAS Trust, to seek repayment and control of BYJU's Alpha Inc. The ruling confirms BYJU's default, acknowledged by its founders.

The Delaware Supreme Court has confirmed that BYJU's, the prominent edtech firm, defaulted on its $1.2 billion Term Loan B. This decision supports a prior ruling by the Delaware Court of Chancery.

US-based lenders and their agent, GLAS Trust, now have the legal right to take action against BYJU's, including seeking repayment and potentially taking control of the company's holding entity, BYJU's Alpha Inc. The ruling was based on multiple amendments to the credit agreement that the company's founders signed.

The court's decision underscores significant financial challenges for BYJU's as the lenders' total claims have increased to $1.5 billion amidst ongoing insolvency proceedings. A response from BYJU's is still awaited.

(With inputs from agencies.)