A group of lenders, who they say collectively own more than 85 per cent of Byju’s $1.2 billion term loan, termed the recent lawsuit by Byju’s “meritless”. It comes after Byju’s earlier this week skipped paying $40 million in interest payments on the term loan it had raised in November 2021. The company instead filed a case against one of its lenders in the New York Supreme Court and also sought disqualification of the lender and called it “predatory”.
“Byju’s’ meritless lawsuit against its term loan lenders is simply an effort to avoid complying with its obligations, including making contractually required payments,” the lenders’ group said in a statement.
It added that the lender group, comprised of 21 highly respected global institutional investors, has sought to work constructively with the company over the past nine months to cure its numerous defaults and will continue to do so in good faith. “However, in the event, Byju’s intentionally remains in default, the lender group reserves all rights available to it to enforce the credit agreement.”
Houlihan Lokey serves as financial advisor to the term loan lender group and Kirkland & Ellis LLP, Cahill Gordon & Reindel LLP, and Shearman & Sterling LLP are serving as legal advisors, according to the statement.
Comments
0 comment