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Byju Raveendran, founder of Indian ed-tech firm Byju’s, has challenged a U.S. bankruptcy court’s order demanding he pay over $1 billion in defaulted loans. The judge ruled against him after finding he ignored court directives and provided incomplete information about missing funds. Lenders accused Byju’s of misusing $533 million from a 2021 loan, while the founder claims the court overlooked key facts. The case highlights a dramatic decline for a once-valued $22 billion startup now facing lawsuits and financial turmoil. Raveendran’s legal team plans to appeal, arguing the judgment was unjust and lacked proper procedural safeguards.
Key facts
- U.S. bankruptcy court ordered Byju Raveendran to pay $1.07 billion after defaulting on loans.
- Judges cited repeated noncompliance and ‘evasive’ responses regarding missing $533 million in funds.
- Byju’s former $22 billion valuation has collapsed, with the company now facing insolvency proceedings in India.
- Lenders allege the founder diverted funds to personal use, while Raveendran denies wrongdoing.
- The case underscores ongoing legal battles between Byju’s and creditors over loan repayment and asset control.
