Latest news with #DivyaGokulnath
Hans India
2 days ago
- Business
- Hans India
Supreme Court dismisses Byju's settlement plea
New Delhi: The Supreme Court on Monday dismissed pleas filed by the BCCI and Riju Raveendran — brother of Byju Raveendran — seeking withdrawal of insolvency proceedings against Byju's and to consider the settlement between the beleaguered edtech company and the BCCI. A Bench of Justices JB Pardiwala and R Mahadeven refused to interfere with the April 17 order of the National Company Law Appellate Tribunal (NCLAT) which had ruled that since the settlement proposal was filed after the formation of Committee of Creditors (CoC), it required the approval of the lender's body under the provisions of section 12 A of the Insolvency and Bankruptcy Code. Earlier in February 2025, the National Company Law Tribunal (NCLT) had directed the petitioners to place their settlement offer before the new CoC, in which US-based Glas Trust, the trustee for lenders to which Byju's owes $1.2 billion, is a member. The Corporate Insolvency Resolution Process (CIRP) against Byju's was initiated in July last year by the NCLAT, admitting a Rs 158.90 crore claim from the BCCI as an operational creditor of edtech major. An Interim Resolution Professional (IRP) was also appointed in this matter. Later, a settlement was reached between the parties, and Byju Raveendran approached the NCLAT. The appellate tribunal set aside the insolvency proceedings against Byju's on August 2, 2024, after approving a dues settlement with the BCCI, which had entered into a Team Sponsor Agreement with the cricket body in 2019. This was challenged by Glas Trust before the Supreme Court. A Bench headed by then Chief Justice of India (CJI) DY Chandrachud halted the NCLAT order and directed the BCCI to deposit the amount in question in a separate escrow account till further orders. Meanwhile, Byju's Alpha, a special purpose financing vehicle established by Byju's in the US to receive proceeds of a $1.5 billion Term Loan B, has sued Byju Raveendran, co-founder and his wife Divya Gokulnath for "orchestrating theft of $533 million". Byju's Alpha said that following the $533 million judgment of the United States Bankruptcy Court for the District of Delaware against Riju Ravindran and Byju's ultimate corporate parent in India, the company has now filed a lawsuit against Byju Raveendran, his co-founder and wife Divya Gokulnath, and his consigliere (advisor), Anita Kishore. The lawsuit states that each of them co-orchestrated and executed a lawless scheme to conceal and steal $533 million of loan proceeds (the 'Alpha Funds'), according to a press release. They further stated that "it is clear that Byju, Divya, and Anita deliberately hid the assets of Byju's Alpha and repeatedly were deceptive about the location of the money in order to steal funds rightfully owed to the Lenders".
Time of India
6 days ago
- Business
- Time of India
Byju's founders plan $2.5 billion lawsuit against Glas Trust, others for reputational damage
Synopsis The lenders will be sued in Indian and overseas courts. Meanwhile, the group of lenders has filed a case in a US bankruptcy court against Raveendran, Divya Gokulnath, and former Byju's chief strategy officer Anita Kishore, accusing them of co-orchestrating and executing a scheme to 'conceal and steal $533 million of loan proceeds' from a $1.2 billion loan taken by Byju's US arm, Alpha.
The Hindu
6 days ago
- Business
- The Hindu
BYJU's founders preparing to file over $2.5-billion suit against Glas Trust, others
Beleaguered edtech firm BYJU's founders, Byju Raveendran and Divya Gokulnath, are gearing up to file an over $2.5 billion suit against Glas Trust and others for damage to their reputation and business, a statement from their counsel said on Thursday (July 17, 2025). The founders are preparing to sue Glas Trust and others in India as well as in foreign countries, according to the statement. "BYJU's founders reserve all rights to bring actions against those parties that have caused damage to them personally and their businesses, including Think & Learn. The conduct before the Courts by Alpha, Glas Trust and its counsel has been reprehensible and improper in our view. We reserve the right to use all legal means to obtain justice for BYJU's founders," Lazareff Le Bars Eurl, Senior Litigation Advisor, J Michael McNutt, said in a statement. The counsel said claims have already been raised in India against Glas Trust, the former subsidiary of Think & Learn, that Glas Trust now claims to control and other parties. "Additional claims are being prepared against those parties in other jurisdictions. Such claims to be issued by all or some of BYJU's founders are expected to request monetary damages of not less than $2.5 billion," McNutt said. At present, Think and Learn – which owns BYJU's brand, is going through insolvency proceedings initiated following an appeal filed by U.S.-based lenders agent Glas Trust.
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Business Standard
6 days ago
- Business
- Business Standard
Byju's founders plan $2.5 billion lawsuit against investors, lenders
The founders of embattled education technology company Byju's are preparing legal action seeking at least $2.5 billion in damages from investors and lenders they blame for harming their business and personal standing. The planned lawsuits target parties the founders say contributed to the downfall of Think & Learn, Byju's parent company, during a prolonged dispute over control of the startup. Some claims have already been filed in Indian courts against Glas Trust, a former subsidiary that now claims control over parts of the business. 'Byju's founders reserve all rights to bring actions against those parties that have caused damage to them personally and their businesses, including Think & Learn,' said J Michael McNutt, Senior Litigation Advisor, Lazareff Le Bars Eurl. 'The claims to be issued by all or some of Byju's founders are expected to request monetary damages of not less than $2.5 billion.' The legal offensive represents an escalation in the bitter fight that has engulfed one of India's most prominent startups. Byju's, once valued at $22 billion, has faced mounting financial pressures and regulatory scrutiny as disputes with investors intensified. This included a battle with US lenders who are demanding $1 billion in unpaid dues, triggering the firm's insolvency. The worth of what was once India's most valued startup is now zero, Raveendran told reporters recently, as he called for rebuilding the erstwhile empire from scratch, brick by brick. Byju's founders, Byju Raveendran and Divya Gokulnath, vigorously dispute all claims made against them by the Resolution Professional of Think & Learn in the Corporate Insolvency Resolution Process (CIRP) and by Glas Trust together with the bankrupt former Delaware subsidiary of Think & Learn Private Limited. In Indian courts, the founders are already contesting the commencement of the CIRP of Think & Learn Private Limited, the standing of Glas Trust in those proceedings, the removal of the Resolution Professional due to a conflict of interest, and other related complaints. The founders said there is no court order in any jurisdiction, including India or the United States, requiring the payment by Byju Raveendran or Divya Gokulnath of any amount to Think & Learn or any related entity, including but not limited to the bankrupt Delaware former subsidiary of Think & Learn Private Limited, Alpha Inc., now controlled by Glas Trust. In a legal response to court proceedings in India, the founders said the same parties have abusively commenced the liquidation of several subsidiaries of Think & Learn Private Limited. A former Delaware subsidiary, Alpha Inc., was placed into liquidation in February 2024 by a director appointed by Glas Trust after the lenders of a Credit Agreement took over Alpha Inc.'s shares in 2023. Byju's founders have disputed those actions and Glas Trust's ability to represent those lenders in proceedings in India and elsewhere. Delaware court proceedings Byju Raveendran said he is actively participating in a Delaware court procedure initiated in early April 2025 against him by the Glas Trust–bankrupt subsidiary. Raveendran disputes the jurisdiction of that court to determine the claims made against him. He also vigorously denies all allegations in those proceedings and said he is defending himself. Raveendran is also aware of the Order of Civil Contempt issued on 7 July 2025 in those Delaware proceedings and has sought reconsideration of that order. The Civil Contempt Order concerns requests for information that are duplicative of matters already before Indian courts. Byju and his counsel are addressing those matters in Indian courts as well. Raveendran said he and his counsel are evaluating how to address the order and reserve all rights. The other founder, Gokulnath, is also actively participating in the same Delaware court procedure initiated against her by the former subsidiary of Think & Learn Private Limited and Glas Trust. Gokulnath disputes the jurisdiction of that court to determine the claims made against her. She also vigorously denies all allegations.
Time of India
11-06-2025
- Business
- Time of India
Troubled Byju's Forced to Sell US Assets Epic and Tynker for a Song
HighlightsByju's is selling its US assets at a significant loss, with the coding platform Tynker being sold for $2.2 million, despite Byju's having paid $200 million for it in 2021. Epic, another platform acquired by Byju's for $500 million in 2021, was sold to China's TAL Education Group for $95 million as part of the bankruptcy proceedings. Byju Raveendran, along with his wife Divya Gokulnath and former executive Anita Kishore, is facing a lawsuit alleging they misappropriated $533 million from lenders who provided a $1.2 billion term loan to the company. Byju's is selling its US assets at a fraction of the price it paid to acquire them, as creditors push to recover their dues from the edtech firm whose American operations are undergoing bankruptcy proceedings, said people in the know. Chicago-based computer science education company CodeHS acquired coding platform Tynker for $2.2 million in cash. Byju's had paid $200 million in cash and stock to buy it in 2021. China's TAL Education Group paid $95 million for Epic, the kids learning platform that Byju's bought in 2021 through a $500 million cash-and-stock transaction. A third subsidiary, educational games company Osmo that Byju's took over for $120 million in 2019 in its first US acquisition, has also been put up for auction but is yet to find a buyer, a person familiar with the matter said. A US bankruptcy court approved the Tynker and Epic deals on May 20, as per a report by US-based publication EdWeek Market Brief. Bankruptcy attorney Claudia Springer has been managing the insolvency proceedings of Byju's subsidiaries in the US. The proceeds from the sale will be used to repay Byju's creditors. In June 2024, ET had reported that some lenders within a consortium that loaned $1.2 billion to Byju's had initiated bankruptcy proceedings against the three subsidiaries. Byju's didn't respond to an email seeking comment till press time Tuesday. Epic was Byju's second-biggest buyout after Indian coaching centre operator Aakash Institute, which the Bengaluru-based edtech firm acquired in 2021 for nearly $1 billion. Aakash Institute also separately raised $300 million from Ranjan Pai, chairman of Manipal Education and Medical Group, in 2023. The edtech firm, which was once valued at $22 billion, has acquired more than 15 companies, most of them during the Covid times of immediately after, driven by fast growing demand for online education. Founder Byju Raveendran had said that the $1.2 billion term loan the company secured from US lenders was used for both organic and inorganic international growth, including several acquisitions globally. On April 10, the lenders filed a lawsuit in the US against Raveendran, his wife Divya Gokulnath and former company executive Anita Kishore. The lawsuit alleged that the three of them planned and executed a scheme to hide and misappropriate $533 million from the money they had lent to Byju's Alpha, a special purpose financing vehicle the edtech company had established in the US to receive the loan. Prior to this, a bankruptcy court ruling indicated that multiple fraudulent transfers and theft had taken place.
