Byju Raveedran allegedly “manipulated” a businessman from Nebraska to acquire over $1.2 Bn worth of loans from US creditors
The founder of BYJU’S allegedly wanted to swap this money to buy out US-based software education firm Epic! Creations
This comes a day after NCLT blocked Aakash from amending its AoA, a move that thwarted Raveendran’s alleged plan to dilute his stake in the firm
Amid ongoing insolvency proceedings against BYJU’S, its founder Byju Raveendran has been accused of trying to buy out a software education firm using hidden loan money in an effort to regain control of the embattled edtech startup.
According to a filing in the US Bankruptcy Court in Delaware, Raveendran “manipulated” Nebraska-based businessman William R Heller into acquiring more than $1.2 Bn worth of loans from US creditors, Bloomberg reported.
Raveendran allegedly wanted to swap that debt to buy digital lending platform Epic! Creations but the plan failed.
“Over the past several months, I have been used as pawn in BYJU’S
manipulation of law,” Heller reportedly said in his written testimony.
Heller will appear before a federal court on Thursday to give his testimony on behalf of a trustee who plans to sell Epic! to raise money for US-based lenders of BYJU’S.
The founder of BYJU’S allegedly transferred $11.2 Mn to Rose Lake Inc. This company was run by Heller and then bought by the said US trustee.
Heller was purportedly supposed to convince lenders that he was flush with cash and then return the money to Raveendran. The money sent to Heller reportedly came from UK-based logistics firm OCI Ltd., which still owes millions of dollars to US creditors.
The report also said that Heller couldn’t gather evidence that OCI was holding money on behalf of BYJU’S.
This comes a day after the National Company Law Tribunal (NCLT) blocked Aakash, a subsidiary of BYJU’S, from amending its Articles of Association (AoA), a move that thwarted Raveendran’s alleged plan to dilute his stake in the firm
Earlier it was reported that Glas Trust, a consortium representing US-based creditors who lent $1.2 Bn to BYJU’S, moved NCLT seeking a stay on the the extraordinary general meeting (EGM) called by Aakash.
Meanwhile, the Board of Control For Cricket in India (BCCI) has filed an application before the NCLT to withdraw its insolvency petition against BYJU’S. The move has been opposed by the edtech startup’s creditors Glas Trust and Aditya Birla Finance.
