Edtech firm, Byju’s has been asked to repay the borrowed amount of $1.2 billion along with interest by its parent company, Think & Learn, from the US Lenders.

The Byju’s brand owner, Byju Raveendran, had around a week ago indicated that verified debt on the company is just Rs 20 crore as per insolvency proceedings and he may not have to pay any money to the US lenders represented by Glas Trust.

On the other hand, Glas Trust sued BYJU'S for a repayment of $1.2 bn TLB in US as well as in India.

The financial crisis of previously the most-valued Indian edtech firm BYJU'S started after US-based lenders started legal action against the company to recover $1.2 billion TLB.

The lenders have asserted that BYJU'S group firm BYJU'S Alpha secured $1.2 billion Term Loan B , which is a loan issued by institutional investors, and transported $500 million out of the US in breach of loan agreement rules.

BYJU'S has refuted the accusation levied by the lenders.

According to Byju's, lenders represented by Glas Trust improperly expedited the loan in March 2023 which was to be repaid in November 2026.

The Insolvency Resolution Professional (IRP) has not admitted a $1.35 billion debt claim submitted by Glas Trust during an ongoing insolvency proceedings against BYJU'S.

The lenders' panel concluded BYJU'S does not have the right to disqualify any lenders and the power belongs only to Timothy R Pohl, as the sole director and officer of BYJU's Alpha, Inc, as recognized by the Delaware court, and Pohl has never excluded any lender.

Raveendran, however, maintains his view on Glas Trust represented lenders that they are not qualified to recover dues.

The lenders' panel also refuted Raveendran's argument that Glas-represented lenders will have to prove that they are not a distress fund in New York court to carry on their demand which is challenging for them.