Byju’s RaveEndran to contest $1.07bn ruling against him in US angryruptpy case
Byju RaveEndran, the poster boy of the startup and the owner of the learning platform Byju, was assessed by the US bankruptcy court to pay more than US $ 1.07 billion, after the hidden funds from Alpha’s Alpha, the company’s financial company.
Judge Brendan Shannon of the Delaware Bankruptcy Court issued the order on Friday, after Raveendran failed to comply with subpoenas and provide documents.
The Court’s order was followed by an automatic hearing of the automatic motion, in which the judge raised several counts of default. He noted that raveendran skipped hearings, missed a long deadline, and ignored a previous contempt order that gave him a $10,000 daily fine that remains unpaid.
Raveendran said he would oppose automatic judgement. A default judgment is issued when a party fails to file charges or ignores court orders, allowing the court to decide without trial.
JJ Michael McNutt, former counsel at Lazareff Lear, representing Raveendran, said in a prepared statement: “We consider that the American court is done in judging this matter and will be filing the necessary appeals and other related contests.
“The court, in our view, ignored the relevant facts.”
In a public press release issued in Paris, Ravendran denied all allegations and said the default judgment was issued on a hasty basis and did not allow him to present a defense. The statement also says he was given sufficient time to retain legal advice and respond to orders that expedite the process. He said the decision was the result of a previous contempt order, which Raveendran said he would contest as part of an appeal.
When the most important startup of India with the startup of US $ 22 billion and VCs like Tiger Global to support us, it was also the sponsor of the Indian National Cricket Team – one of the most prominent, expensive, and sought after places in the country. It has suspended its payments to the powerful Board of Control for Cricket in India (BCCI), which has launched one of the few lawsuits filed against the company.
The case in the US
However, the US case is based on the actions of Alfa by Byju, which was incorporated in Delaware in 2021 as a special vehicle designed to raise and manage the company’s loan of US $ 1.2 billion in terms of the company from the Consortium.
The court filing shows that Byju’s Alpha transfers US $ 533 million to Camshaff capital, a small fund based in Miami. This was followed by more and more investment interest movements, which were “all around” in the syndicates tied to Byju’s, and the court held RaveEndran himself to direct these steps.
The court awarded US $ 533 million for the claim helped by raveendran and stopped the breach of fiduciary duty, and another $ 540.6 million in the wards for breach of fiduciary duty, conversion and construction of a wife.
In his decision, Judge Shannon said that the freedom granted was “extraordinary”, and added: “The circumstances of this case are such, so do whatever they have to do.”
