Byju’s founder Raveendran accused of using hidden cash to regain control of…

Byju Raveendran, founder of the troubled Indian edtech giant Byju’s, has been accused of attempting to secretly regain control of his collapsing business empire using hidden funds, according to a filing in the US Bankruptcy Court in Delaware. The allegations revolve around a scheme to buy back ‘Epic!’, a US-based educational software company, by settling debts owed to American creditors, claims Bloomberg report.

The filing, submitted by Nebraska businessman William R. Hailer, claims Raveendran recruited him to negotiate with US lenders owed $1.2 billion under a distressed loan. The plan involved using loan proceeds allegedly concealed from creditors to purchase the outstanding debt at a significant discount reported to be trading at 24 cents on the dollar. This would have allowed Raveendran to swap the debt for ownership of Epic!, which is now under the control of a US trustee.

According to the filing, Raveendran transferred $11.25 million to a company run by Hailer, Rose Lake Inc., to convince lenders of his financial capability. The funds originated from OCI Ltd., a UK-based logistics company linked to Byju’s. US lenders claim OCI received hundreds of millions of dollars from Byju’s loan proceeds that have yet to be accounted for.