Byju Raveendran Accused of Using Hidden Cash To Buy Back a Software Company

New Delhi, November 22: Byju’s Founder is reportedly under scrutiny after being accused of using hidden cash to try to regain control of the company. Byju Raveendran, the entrepreneur behind the education technology firm, is alleged to have attempted a buyback of a software company using hidden loan funds. In India, Byju’s is currently going through an insolvency proceeding. The court has appointed a professional to help the company to find ways to gather funds to pay back its lenders.

As per a report of Bloomberg, Byju’s Founder is accused of trying to regain firm control with hidden cash. The allegations come from a court filing by Nebraska businessman William R. Hailer. Byju Raveendran is allegedly trying to take back control of his edtech company, which is currently being overseen by the courts. The court supervision is overseen in India, where the parent company is located, and in the United States, where some of its important divisions are based. The information reportedly comes from a court statement made by William R. Hailer, a businessman from Nebraska. OpenAI May Be Considering To Take On Google Chrome, Likely To Introduce Its Web Browser.

Raveendran is said to have brought Hailer on board to help him negotiate a buyout US creditors owed over USD 1.2 billion under a loan. The information reportedly comes from a filing submitted to the US Bankruptcy Court in Delaware. Raveendran could have exchanged that debt, which was valued at around 0.24 cents on the dollar as of Wednesday evening, for ownership of Epic!. However, this plan did not succeed in the end. Deepinder Goyal Offers Chief of Staff Job Position at Zomato, Sets Pre-Conditions Like INR 20 Lakh ‘Fee’ and Zero Salary for First Year; Know How to Apply.

As per multiple reports, this summer, when Hailer started discussions with the lenders, Raveendran transferred $11.25 million to a company called Rose Lake Inc., which is managed by Hailer. The plan was for Hailer to use this money to show the lenders that he had sufficient funds available. After demonstrating this financial backing, Hailer stated that the money was then to be returned to Raveendran. The funds are said to have originated from OCI Ltd, a logistics company based in the UK. The firm has received hundreds of millions of dollars in loans, which US lenders have been attempting to recover.

(The above story first appeared on LatestLY on Nov 22, 2024 01:39 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).