Byju’s overseas lenders file insolvency petition in India

Edtech major Byju’s overseas lenders, who have extended more than 85% of a USD 1.2 Billion term loan, have filed an insolvency petition against the company in the Bengaluru bench of the National Company Law Tribunal (NCLT), under section 7 of the Insolvency and Bankruptcy code of India, 2016.The lenders group has taken the action after 16 months’ effort to restructure the loan.The lenders group noted that Byju’s repeatedly disregarded its loan obligations post-default, including refusing to make any contractually required loan payments, delaying the financial reporting obligations. It also noted that Byju’s Alpha, the US-based subsidiary of the firm, transferred USD 533 million in loan proceeds to an ‘obscure, nascent hedge fund’.