The missing money is at the heart of a dispute between lenders owed $1.2 billion and the startup. Image: Bloomberg
US lawyers for units of the troubled Indian tech firm Byju’s want to quit defending their clients in a bankruptcy dispute, blaming “an irreparable breakdown” with the companies and a board member accused of lying in court to help hide $533 million from disgruntled lenders.
In an unusual move, two law firms representing Riju Ravindran, brother of Byju’s founder, filed papers Friday in federal court in Wilmington, Delaware, claiming their clients have failed to cooperate in their own defense. Lawyers representing Byju’s ally William C. Morton, the founder of a small Florida hedge fund, also sought court permission to quit.
Representatives for Byju’s and Morton didn’t immediately respond to a request for comment.
For months, lenders have been trying to find $533 million in cash that Ravindran allegedly moved out of the US, according to court documents. US Bankruptcy Judge John Dorsey held Ravindran in contempt of court for refusing to help track down the money.
The missing money is at the heart of a dispute between lenders owed $1.2 billion and the startup founded by entrepreneur Byju Raveendran. The education-tech company’s official name is Think & Learn Pvt.
The cash belongs to a bankrupt shell company, Byju’s Alpha Inc., which is affiliated with Think & Learn and was taken over by the lenders after their loan defaulted.
The US bankruptcy case is BYJU’s Alpha Inc., 24-10140, US Bankruptcy Court District of Delaware (Wilmington).
First Published: Jul 23 2024 | 8:01 AM IST
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