Byju’s sues to contest $1.2B loan acceleration and seeks to disqualify Redwood for ‘predatory’ tactics.
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.