Redwood was accused of violating the terms of the term loan facility by Byju’s, which brought the lawsuit before the New York Supreme Court. Byju’s claimed Redwood bought a sizable share of the loan while predominantly dealing in distressed debt.
In addition, Redwood entities received a notice from Byju’s that, once it becomes effective, the investment firm will no longer be eligible to serve as a lender with crucial rights under the term loan standards.
According to the company, “We were forced to take these steps as a result of a number of predatory practises by the lenders, led by Redwood.”
According to the company, the lenders improperly accelerated the term loan B in March as a result of a number of alleged non-financial and technical defaults. The lenders also initiated unjustified enforcement actions, such as seizing control of its U.S. subsidiary BYJU’S Alpha and appointing its management, the company said.
The business claimed it has decided to hold off on paying the term B loan providers any additional money, including interest, until the legal matter has been resolved.