Leading education content company Byjus has sued Redwood for over $1.2 billion in debt. Byjus issued notices to the Redwood firms disqualifying the investment firm as a lender under the terms of the term loan. Byjus made a key statement on this matter.
Red Wood allegedly bought a significant portion of the debt, essentially trading in distressed debt. It is specifically against the rules and the suit in the court was dismissed.
The company clarified that they had to take these actions following the predatory tactics of lenders led by Red Wood. In March, it said the lenders accelerated the loan illegally due to certain non-monetary and technical defaults.
The company has alleged that the lenders are particularly trying to take control of Byjus’s unit Alpha in the US. Byjus alleged that unnecessary enforcement actions were taken. However, the company has chosen not to make any further payment to the B-loan providers, including any interest, till the court resolves the current dispute.