This is an archive article published on June 6, 2023

Byju’s files suit against lender in New York court

Byju's, which filed the suit in the New York Supreme Court, said Redwood purchased a significant portion of the loan while primarily trading in distressed debt, which was contrary to the conditions of the term loan facility.

Byju's also issued a notice to Redwood entities disqualifying the investment firm as a lender with critical rights under the term loan norms once it takes effect, the company said in a statement. (File image)

By: Reuters

2 min readJun 6, 2023 10:03 AM IST First published on: Jun 6, 2023 at 09:57 AM IST

Education technology startup Byju’s filed a suit against investment management firm Redwood to challenge the acceleration of a $1.2 billion term loan B facility and disqualify the lender for its “predatory tactics,” the company said on Tuesday.

Byju’s, which filed the suit in the New York Supreme Court, said Redwood purchased a significant portion of the loan while primarily trading in distressed debt, which was contrary to the conditions of the term loan facility.

Byju’s also issued a notice to Redwood entities disqualifying the investment firm as a lender with critical rights under the term loan norms once it takes effect, the company said in a statement.