Byju’s Lenders Call the Lawsuit ‘Meritless’ and ‘An Effort To Avoid Complying With Obligations’
The new lawsuit filed by Byju was deemed “meritless” by a consortium of lenders who claim to jointly control more than 85% of the $1.2 billion term loan held by Byju. company happens after Byju’s missed $40 million in interest payments earlier this week on the term loan company had obtained in November 2021. Instead, the business filed a lawsuit in the New York Supreme Court against one of its lenders, calling it “predatory” and asking for the lender to be barred from lending.
The lenders’ organization said in a statement that Byju’s “meritless lawsuit against its term loan lenders is simply an effort to avoid complying with its obligations, including making contractually required payments.”
It continued that the lender group, which is made up of 21 reputable international institutional investors, has made an effort over the last nine months to engage constructively with the firm to correct its repeated defaults and would continue to do so in good faith. However, the lender group maintains all of its rights to enforce the loan arrangement in the event that Byju’s continues to knowingly breach it.
According to the statement, the term loan lender group is advised financially by Houlihan Lokey and legally by Kirkland & Ellis LLP, Cahill Gordon & Reindel LLP, and Shearman & Sterling LLP.
