Photo credit: Glassdoor
A US division of Indian edtech firm Byju’s has been put into bankruptcy by a court-appointed agent, Bloomberg reported.
The move comes after the unit, Byju’s Alpha, defaulted on US$1.2 billion in debt. According to the Bloomberg report, citing a document filed by the US entity’s CEO Timothy Pohl, Byju’s Alpha lacked the funds to pursue its conflict with its parent firm over the debt.
Byju’s Alpha is also gearing up to take a minor Florida-based hedge fund to court, alleging that the fund helped Byju’s disguise over US$500 million in cash that should have been assigned to its creditors.
In its bankruptcy filing, Byju’s Alpha declared assets worth at least US$500 million and liabilities of at least US$1 billion.
Meanwhile, several major backers of Byju’s have called for a change in leadership at the company along with the reconstitution of the board of directors.
Think and Learn, Byju’s parent company, previously said it is looking to raise US$200 million via a rights issue to “support its ongoing efforts to drive growth and achieve operational sustainability.”
See also: The $22b question on Byju’s valuation
Editing by Miguel Cordon and Lorenzo Kyle Subido
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