Delaware Supreme Court Rules BYJU’S Defaulted On $1.2 Bn Loan

The Delaware Supreme Court has ruled that BYJU’S defaulted on a $1.2 billion term loan B (TLB), upholding an earlier decision by the Court of Chancery. This ruling allows US-based lenders, represented by Glas Trust, to take control of BYJU’S US-based entity, BYJU’S Alpha, and demand full repayment of the loan. The court’s decision is a significant setback for the troubled edtech startup, which has been facing financial difficulties and legal challenges. BYJU’S had argued that the lenders were making extortionate demands and creating bogus default claims to gain leverage in loan restructuring negotiations. However, the court found that BYJU’S had repeatedly violated the terms of the loan agreement. This ruling underscores the importance of adhering to contractual obligations and the potential consequences of defaulting on large loans.