Byju’s founder accused of trying to regain firm with hidden cash
Published On : 2024-11-21T08:32:01+0530 [ IST ] |
Author : Mayur_Tembhare
Reading Time : 2 mins
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Raveendran has denied wrongdoing in past responses to lender allegations.The founder of bankrupt Indian tech firmByju tried to use loan proceeds that he allegedly hid from US lenders to secretly buy back a
Byju Raveendran has been trying to regain control of his capsizing education technology empire which is under court supervision in both India where the parent is based and the US where some of its valuable units are located.
Raveendran allegedly recruited Hailer to try to buy out US creditors owed more than $1.2 billion under a loan. The plan ultimately failed.
Hailer wrote in his testimony that over the last several months I have been used as a pawn in Byju’s manipulation of the law.
A representative of Byju and a lawyer for Raveendran did not return requests for comment.
Raveendran has denied wrongdoing in past responses to lender allegations saying his actions were a justified response to overly aggressive tactics used by creditors who specialize in squeezing money out of distressed
This summer when Hailer began negotiating with lenders Raveendran wired $11.25 million to a company that Hailer ran called Rose Lake Inc. Hailer was supposed to use the cash to prove to lenders that he was well funded. The money was then to be returned to Rav
The money came from OCI Ltd a UK-based logistics firm that received hundreds of millions of dollars in loan proceeds that US lenders have been trying to reclaim.
Hailer said he tried unsuccessfully to gather proof that OCI was still holding money on behalf of Byju's even though Raveendran has claimed all the cash has been spent. For several months Hailer said he regularly spoke with Raveendran and other Indian business people involved in the Byju
Lenders have been fighting Byju’s in both US state and federal courts for more than a year. Lenders claim Raveendran hid $533 million in loan proceeds that should have been repaid to creditors.
The case is Epic! Creations, Inc. 24-11161 US Bankruptcy Court, District of Delaware (Wilmington).
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Source : Reporters From Sunrise Chronicles
Tags : Raveendran Raveendrancould , indian , Thursday , Nebraska , Rose Lake Inc , This , Hailer , byjunebraska businessman william r hailer , For , Bankruptcy Courtin Delaware ,
Summary :
Raveendran has denied wrongdoing in past responses to lender allegations.The founder of bankrupt Indian tech firmByju tried to use loan proceeds that he allegedly hid from US lenders to secretly bu
