BENGALURU: The Delaware Bankruptcy Court has issued a summary judgment in favour of lenders and against Riju Ravindran (brother of Byju Raveendran, founder of the embattled education firm Byju’s), Camshaft Capital Fund, and its affiliates, and Think & Learn. This is pertaining to term loan money amounting to $533 million.
The lenders of the $1.5 billion Term Loan B to Byju’s Alpha, a Delaware special purpose financing vehicle established by edtech firm Byju’s to receive proceeds of the term loans, in a statement said, “We are gratified the Court unequivocally recognised that Riju Ravindran, Camshaft, and Byju’s together conducted a deliberate fraud on a global scale arising from the theft of $533 million.”
They said, This is a significant step forward in the Lenders’ efforts to recover the stolen funds that are rightfully owed to them.”
The Order finds that Riju Ravindran, Camshaft Capital Fund and its affiliates, and Think & Learn, alongside Byju Raveendran, are responsible for orchestrating and executing an unlawful scheme that defrauded the lenders.
In 2021, Byju’s established a US subsidiary Byju’s Alpha to receive proceeds of the term loan. According to lenders, in 2022, Byju’s Alpha, under the control of the Raveendran family (and prior to the brothers’ removal as director and officers of Byju’s Alpha on March 3, 2023), transferred $533 million in term loan proceeds to Camshaft Capital Fund, LP, a sham hedge fund founded by William Morton.