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US bankruptcy court restricts Byju’s from using $533-M parked overseas

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A US bankruptcy court has ordered a freeze on USD 533 million in loan proceeds belonging to Think & Learn Pvt, the parent company of Byju’s. The court issued a preliminary injunction against the defendants in this case - Riju Ravindran, Inspilearn LLC, Camshaft Capital Fund, LP, and its affiliates - prohibiting these entities from moving or using the USD 533 million in question. The court also found Byju’s founder Byju Raveendran and his wife Divya Gokulnath to be collaborating with the defendants. Additionally, the court has issued an arrest warrant for William Morton, the founder of Camshaft Capital, who left the country before the hearing.In November 2021, Byju’s had raised USD 1.2 Billion through a Term Loan B from US lenders through a special purpose vehicle, Byju’s Alpha, incorporated in Delaware. USD 533 million is said to be “missing” from the USD 1.2 Billion owed to lenders by Byju’s.