A group of lenders has described the case filed by Byju’s against them in the New York Supreme Court as “meritless” and characterised it as an effort by the company to avoid fulfilling its obligations, further escalating tensions between the two parties that have been at loggerheads for almost six months.

“Byju’s’ meritless lawsuit against its term loan lenders is simply an effort to avoid complying with its obligations, including making contractually required payments,” said a group of ad hoc term loan lenders, who collectively own more than 85 percent of Byju’s $1.2 billion term loan.

The lender group, comprised of 21 highly respected global institutional investors, has sought to work constructively with the company over the past nine months to cure its numerous defaults and will continue to do so in good faith. However, in the event, Byju’s intentionally remains in default, the lender group reserves all rights available to it to enforce the credit agreement,” the group added.

Houlihan Lokey serves as financial advisor to the term loan lender group and Kirkland & Ellis LLP, Cahill Gordon & Reindel LLP, and Shearman & Sterling LLP are serving as legal advisors, according to the statement.

The statement from lenders comes a couple of days after Byju’s skipped paying $40 million in interest payments on the term loan it had raised in November 2021. The company instead filed a case against one of its lenders in the New York Supreme Court and also sought disqualification of the lender and called it “predatory.”

Earlier in May, Byju’s lenders had sued Byju’s Alpha Inc, a wholly-owned US subsidiary of Byju’s that raised the TLB in November 2021 in the Delaware court on allegations of hiding $500 million from them.

The two sides have been locked in a legal battle since then, with each side accusing the other of wrongdoing. The latest development is likely to further complicate the situation and make it difficult for the two sides to reach a settlement.

It remains to be seen how the court will rule on the case, but the current situation is not good for either side. Byju’s is facing financial pressure and its reputation is taking a hit, while the lenders are also facing losses. A protracted legal battle is not in the interests of either side, and it is hoped that they will be able to reach a settlement soon.

A group of lenders has described the case filed by Byju’s against them in the New York Supreme Court as “meritless” and characterised it as an effort by the company to avoid fulfilling its obligations, further escalating tensions between the two parties that have been at loggerheads for almost six months.

“Byju’s’ meritless lawsuit against its term loan lenders is simply an effort to avoid complying with its obligations, including making contractually required payments,” said a group of ad hoc term loan lenders, who collectively own more than 85 percent of Byju’s $1.2 billion term loan.

The lender group, comprised of 21 highly respected global institutional investors, has sought to work constructively with the company over the past nine months to cure its numerous defaults and will continue to do so in good faith. However, in the event, Byju’s intentionally remains in default, the lender group reserves all rights available to it to enforce the credit agreement,” the group added.

Houlihan Lokey serves as financial advisor to the term loan lender group and Kirkland & Ellis LLP, Cahill Gordon & Reindel LLP, and Shearman & Sterling LLP are serving as legal advisors, according to the statement.

The statement from lenders comes a couple of days after Byju’s skipped paying $40 million in interest payments on the term loan it had raised in November 2021. The company instead filed a case against one of its lenders in the New York Supreme Court and also sought disqualification of the lender and called it “predatory.”

Earlier in May, Byju’s lenders had sued Byju’s Alpha Inc, a wholly-owned US subsidiary of Byju’s that raised the TLB in November 2021 in the Delaware court on allegations of hiding $500 million from them.

The two sides have been locked in a legal battle since then, with each side accusing the other of wrongdoing. The latest development is likely to further complicate the situation and make it difficult for the two sides to reach a settlement.

It remains to be seen how the court will rule on the case, but the current situation is not good for either side. Byju’s is facing financial pressure and its reputation is taking a hit, while the lenders are also facing losses. A protracted legal battle is not in the interests of either side, and it is hoped that they will be able to reach a settlement soon.