Byju Raveendran, the CEO of Byju’s, is ordered to pay over $1 billion by a U.S. bankruptcy court, denying wrongdoing and vowing to appeal. The judgment stems from lenders seeking to recover funds related to a term loan. Raveendran and his wife face legal action over missing loan proceeds and plan to pursue a lawsuit against lenders.

The Delaware bankruptcy judge issued a default judgment against Raveendran for failing to comply with court orders regarding $533 million and a partnership stake valued at $540.6 million. This ruling follows legal action by lenders trying to retrieve funds from a term loan extended to Byju’s in 2021. Raveendran denies wrongdoing and plans to appeal.

Raveendran’s legal counsel argues that the court’s judgment was issued unfairly without allowing a defense. Byju’s founders are preparing to file claims against lenders in multiple jurisdictions seeking $2.5 billion in damages. The default judgment marks a significant downfall for Raveendran and Byju’s, once valued at $22 billion and backed by global investors.

Byju’s is undergoing a court-supervised sale process in India after insolvency proceedings began last year. Early bidders include Manipal Education and Medical Group and Ronnie Screwvala’s UpGrad. The company faces a funding drought, layoffs, and legal battles as lenders strive to recover what they can.

Read more at Yahoo Finance: Byju’s founder to appeal U.S. court order to pay over $1B in bankruptcy case