American Court Orders Byju’s to Freeze $533 Million in Major Relief for Lenders

In a significant development in the ongoing legal battle involving Think & Learn, the parent company of Byju’s, an American court has issued a crucial order directing the freeze of $533 million. The decision comes as a major relief for lenders who have been embroiled in a bitter dispute with the tech firm over the allocation of funds.

The court’s ruling mandates the freezing of $533 million to safeguard the interests of “disgruntled lenders” who contend that the funds should be reserved solely for their repayment. According to reports, the sum in question was purportedly transferred to Morton’s hedge fund before being moved to an undisclosed offshore trust.

This decision is being perceived as a mixed victory for the lenders engaged in the protracted legal battle with Think & Learn. The lenders had insisted on placing the funds under the jurisdiction of the federal court to prevent their utilization by the tech firm.

Riju Ravindran, a director at Think & Learn and the brother of founder Byju Raveendran, was specifically targeted by the court order. He has been directed to assist in uncovering the whereabouts of the funds. Despite claims of ignorance regarding the funds’ location, the judge expressed skepticism and urged Ravindran to cooperate in resolving this crucial aspect of the dispute.

Ravindran’s attorney argued that the lenders’ aggressive stance on debt default issues justified the company’s decision to withhold the funds. Think & Learn is currently engaged in legal battles with the lenders in state courts in Delaware and New York.

Furthermore, the lenders had previously taken control of Byju’s Alpha, a holding company established by Think & Learn for issuing debt worth $1.2 billion. Byju’s Alpha is now undergoing bankruptcy proceedings under court oversight, with Ravindran appealing a decision by Delaware’s Chancery Court regarding the seizure.

In a related development, the court ordered the arrest of William C. Morton, the founder of a Florida hedge fund, for refusing to disclose the whereabouts of the allegedly hidden cash. Morton faces contempt charges and hefty fines until he provides the requisite information.

Amidst these legal proceedings, Ravindran revealed during Thursday’s bankruptcy hearing that three of Think & Learn’s six directors have resigned, leaving only himself, his brother, and his sister-in-law in charge of the company.

The unfolding events underscore the complexity and intensity of the legal battle surrounding Think & Learn, with the latest court order representing a significant milestone in the ongoing dispute. Further developments are expected as the legal proceedings continue to unfold.