The Indian edtech giant, Byju’s, has taken legal action against Redwood, alleging that the loan company has used predatory tactics to gain control over a significant portfolio of $1.2 billion term loan B. Byju’s has filed a complaint in the New York Supreme Court in response to lenders unlawfully accelerating the term of the loans due to “certain alleged non-monetary and technical defaults.” In retaliation, lenders have seized control of Byju’s Alpha and appointed its management, leading the startup to issue a notice requesting Redwood’s disqualification. Byju’s claims it will not make any payments to term loan B lenders until the dispute is resolved and warns that Redwood could lose critical rights under the TLB.
