Byju’s crisis: Byju’s said that the latest disclosures dispel fake narratives that the $553 million have been siphoned off.
Byju’s, that claimed on Saturday that it had no money to pay salaries to employees after the just-raised funds through rights issue, stated ahead of a US court hearing that it has $553 million parked in an American investment firm. On Sunday evening, the edtech firm, ahead of a hearing on the whereabouts of its $553 million funds, said that its subsidiary in the US is the beneficial owner of the fund. Byju’s, however, can’t bring TLB (term loan B) money to India, so it can’t be used to pay the salaries of its employees.
“Camshaft, in its latest submission, has disclosed to the Delaware Court that the USD 533 million was transferred from BYJU’S Alpha to another 100 per cent Think & Learn owned subsidiary, Inspilearn LLC (a Delaware firm). As BYJU’s has indicated previously – the funds continue to remain in a Think and Learn subsidiary, contrary to the false allegation made by a select list of investors before the NCLT in India,” Byju’s said in a statement.
The Florida hedge fund was asked to reveal where the money is located or face possible sanctions from a federal judge. “Camshaft, in its latest submission, stated it had transferred the money to a non-US Fund in the name of a 100 per cent subsidiary of Think & Learn, Inspilearn LLC. It also clarified that no limited partners in the Camshaft Capital Fund are related or are any subsidiary of Think & Learn,” Byju’s statement claimed.
Camshaft is a wealth manager that managed the funds, according to the Byju’s statement. The manager transferred the money to a 100 per cent subsidiary of Byju’s the company said. Byju’s said that this is consistent with its position that the group entities remained the beneficiary holders of the money, which the lenders have sought to gain information of, citing technical defaults.