News Brief
Byju's Hid Rs 4,400 Crore In Fund Once Run From Pancake Shop In US, Allege Lenders: Report
These allegations are the latest development in an ongoing dispute between Byju's and its lenders.
One of India's leading education-technology companies, Byju's, is facing allegations that it concealed $533 million in a little-known hedge fund.
Lenders attempting to recover the funds claim that the hedge fund, which previously claimed its main office was an IHOP pancake restaurant in Miami, was used to hide the money.
According to a lawsuit filed by some of Byju's lenders, the company transferred over half a billion dollars to Camshaft Capital Fund, an investment firm founded by William C Morton.
The lenders argue that Morton lacks formal training in investing, making it questionable why his fund received such a large sum of money.
Additionally, court documents reveal that luxury cars, including a 2023 Ferrari Roma, a 2020 Lamborghini Huracan EVO, and a 2014 Rolls-Royce Wraith, have been registered under Morton's name since the transfer.
These allegations are the latest development in an ongoing dispute between Byju's and its lenders.
The lenders claim that the $533 million is collateral for a $1.2 billion loan, while Byju's has accused the lenders of employing predatory tactics.
They claim that Byju's went to great lengths to keep the money hidden, further exacerbating the ongoing dispute.
Byju's is currently in discussions with creditors to reach a deal.
In a surprising move, the ed-tech company has proposed to buy back the loan within six months. To fund this repayment, the company is in talks to sell some of its overseas assets to private equity and strategic investors.
Byju's has clarified that it is not involved in the Florida court proceedings and has not been served with copies of the lawsuit.
According to the fund's lawyers, Camshaft has not been informed about the lawsuit by Glas Trust, the agent for the creditors.
In response to Glas Trust Company's court filing, Camshaft lawyer David Massey has strongly denied the statements made. Massey stated in an email that Camshaft vigorously denies the allegations made against them.
