According to a media report, Indian edtech major Byju’s had dubiously transferred USD 553 million dollars to the fund of Miami-based Pancake house. The reports have come at a precarious stage when Byju’s is in loggerheads with its lenders.
As per the lawsuit of lenders, Byju’s last year had transferred half billion dollars to US-based Camshaft Capital fund, founded by William C. Morton. However, Camshaft capital has rubbished the claims made by lenders in the lawsuit.
Despite such, the lawsuit has opened to explosive details alleging that Camshaft Capital fund received the funding although they have lack of formal training in the investing. Adding to which, it has mentioned startling discoveries that a series of luxury cars such as 2023 Ferrari Roma, a 2020 Lamborghini Huracán EVO, and a 2014 Rolls-Royce Wraith — were registered in Morton’s name soon after the funding.
Glass Trust, the agent for creditors, has argued in Miami-Dade County court fillings that, “Byju’s had gone to the extreme extent of hiding the whereabouts of borrower’s USD 533 million for the admitted purpose of hideousness.”
In contrast, Byju’s is making every restorative attempts to arrive at a mutual deal with the lenders. However this week, it left everybody surprised by offering to buyback the default loans. The talks in industry are that, it is in contact to sell some of its overseas assets to strategic investors and private equity.
Refuting the allegations, Byju’s said on late Tuesday (US time zone) that it is not accountable to Florida court proceedings and is yet to receive copies of lawsuits.
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