Lenders to Indian education-technology company Byju’s have alleged that it covertly transferred $533 million to a Florida-based hedge fund, adding another dimension to their legal feud with one of India’s most highly valued startups, WSJ Pro Bankruptcy reported. A lender lawsuit filed in a Miami court last week alleges Byju’s sent $533 million that should have been in its U.S. affiliate’s bank accounts to Camshaft Capital, described as a Miami-area hedge fund, and concealed the whereabouts of that money from the company’s lenders. The case, filed by the lenders’ agent, Glas Trust Company, seeks to unwind the alleged transfer to Camshaft Capital, to recover any associated fees and to “otherwise ascertain what happened” to $533 million that purportedly served as collateral for a $1.2 billion loan. Byju’s is battling its lenders across several courts after they called defaults against the company earlier this year and sought to take control of its U.S. affiliate, Byju’s Alpha, citing its alleged failure to make required financial disclosures. Byju’s has disputed that it breached its obligations and accused the lenders of manufacturing defaults to try to extort the company for payments.
