Byju's Alpha Accused of Hiding $500 Million From Lenders
NDTV
The allegation came out at a court hearing on Thursday in Delaware, where Byju's Alpha faces a lawsuit over who should control the company.
Lenders accused one of India's hottest tech companies, Byju's Alpha, of hiding $500 million as part of a fight between creditors and the self-proclaimed biggest education technology company in the world.
The allegation came out at a court hearing on Thursday in Delaware, where Byju's Alpha faces a lawsuit over who should control the company. Lenders claim that because of a default earlier this year, they have the right to put their representative, Timothy R. Pohl, in charge.
The dispute is the latest setback for the high-flying startup founded by Byju Raveendran. Byju's had already been working to appease creditors trying to restructure a $1.2 billion term loan when government investigators searched company offices in April. The Bengaluru-based company has been working toward an initial public offering of its tutoring unit for several years.
Earlier this year, as the two sides were in a standoff, a top manager at Byju's Alpha "admitted to transferring half a billion dollars out of the company," Brock Czeschin, one of Pohl's lawyers, said during the hearing, which was held by telephone.
