Delaware Supreme Court Validates BYJU's Loan Default

The Delaware Supreme Court affirmed that BYJU's defaulted on a $1.2 billion Term Loan B, as recognized by both the company’s founders. The ruling has prompted BYJU's US-based lenders to take legal action while the edtech firm maintains the ruling has no impact on ongoing Indian legal proceedings.

The Delaware Supreme Court has ruled that BYJU's defaulted on a $1.2 billion Term Loan B, confirming an earlier decision by the Delaware Court of Chancery. This ruling enables BYJU's lenders and their agent, GLAS Trust, to take actions against the company.

Think and Learn, the parent company of BYJU'S, stated that the decision only upholds a limited aspect of the Chancery court ruling and does not influence the ongoing adjudication in New York regarding the loan's acceleration and enforcement.

BYJU's had contested the default claims made by its US lenders. However, both its founder and CEO Byju Raveendran, and his brother Riju Ravindran, acknowledged the default in October 2022. Despite the court's decision, BYJU's posted that the ruling has no bearing on pending cases in India.

(With inputs from agencies.)