- Lenders, including Redwood Investments LLC and Silver Point Capital LP, cited a default on a $1.2 billion loan to take control of Byju’s Alpha, a unit of ed-tech giant Byju’s.
- The lenders exercised contractual rights to replace a board member with their nominee, following a court ruling by Delaware Chancery Court Judge Morgan Zurn.
- Timothy Pohl, appointed by lenders, became the sole director of Byju’s Alpha after defaults were cited, leading to leadership changes and his takeover as CEO.
- Byju’s, facing financial distress post-pandemic, had been working on asset sales and addressing the loan issue when government investigators searched its offices.
- Despite Byju’s claims of baseless default arguments, the court ruled in favor of the lenders, acknowledging repeated defaults, and the lenders are pressing for loan repayment.