Byju's says it is Beneficiary owner of $533 million fund parked in US

Edtech giant Byju's, facing a US court hearing regarding the whereabouts of $533 million in funds, claims the money remains beneficially owned by a US subsidiary. This statement comes amidst reports of the company struggling to pay employee salaries, raising questions about the accessibility of these funds.

Dispute Over Fund Location:

• Byju's asserts that the $533 million, initially managed by Camshaft, a US wealth manager, was transferred to Inspilearn LLC, a Delaware subsidiary fully owned by Byju's.

• This contradicts claims from some investors who alleged the funds were "siphoned off."

Financial Woes and Contradiction:

• Despite claiming ownership of the $533 million, Byju's recently reported difficulties paying employee salaries.

• This inconsistency raises concerns about the accessibility or restrictions associated with the funds.

Byju's Response:

• Byju's blames "predatory bond traders" and dissenting shareholders for the legal challenges and financial issues they face.

• They claim the court case and shareholder dispute are attempts to gain leverage and control the company.

• The company maintains that the loan agreement with lenders does not restrict their use of funds.

Unresolved Questions:

• The true availability of the $533 million for Byju's operations remains unclear.

• The legal battle in the US and the shareholder dispute in India continue to unfold.

• The long-term impact on Byju's financial health and employee well-being remains to be seen.

the complex financial situation Byju's finds itself in, marked by legal disputes, conflicting claims, and financial challenges. As the US hearing proceeds and the Indian shareholder dispute progresses, the fate of the $533 million and the company's future remain uncertain.