Byju’s claims beneficial ownership of $533 million fund amid US court hearing

Byju’s funds dispute: Think & Learn Private Ltd owned Byju's on Sunday, March 3, told that it is the beneficial owner of a disputed sum of $533 million parked in an American private investment firm. This come ahead of a crucial US court hearing probing the disposition of the funds.

Byju’s subsidiary in the United States maintains ownership of the $533 million, the company affirmed in a statement released on Sunday evening. This declaration follows concerns raised after Byju’s disclosed its inability to meet employee salary obligations due to a fund lock-up stemming from a disagreement with investors.

Recent disclosures by Camshaft, the wealth manager overseeing the funds, shed light on the transfer of the $533 million from BYJU’S Alpha to another subsidiary, Inspilearn LLC, a Delaware-based entity. Byju’s emphasised that the funds remain within its corporate structure, refuting allegations to the contrary.

In response to inquiries from the Delaware Court, Camshaft confirmed the transfer of funds to a 100 per cent subsidiary of Think & Learn, Byju’s parent company. This assertion aligns with Byju’s stance that its group entities retain beneficial ownership of the funds, despite challenges from lenders citing technical defaults.

Addressing concerns over fund usage, Byju’s reiterated that the credit agreement with lenders does not impose restrictions on fund movement or investment. Furthermore, there is no obligation to maintain cash as collateral under the agreement, Byju’s clarified.

The company attributed the legal proceedings initiated by predatory bond traders and unfounded allegations by certain shareholders to the disruption of the current management structure. Byju’s condemned these actions as attempts to unlawfully influence the acceleration of credit agreements and replace key leadership positions.

(With PTI inputs.)