New Delhi, Nov 22 (NationPress) A US bankruptcy court has mandated that Byju's founder, Byju Raveendran, pay in excess of $1.07 billion, holding him personally accountable for the transfer and concealment of assets from Byju's Alpha, the company's US-based financing branch.

The default ruling, issued by Judge Brendan Shannon of the Delaware Bankruptcy Court, comes after Raveendran's consistent failure to adhere to court orders to appear and submit necessary documentation, as reported by various media outlets.

A default ruling occurs when a party neglects to engage in legal proceedings or disregards court directives, allowing the court to make a determination without a trial.

In response, Byju Raveendran has refuted all claims and announced plans to contest the US court's ruling. Raveendran stated that the default judgment was expedited unfairly, preventing him from mounting a defense.

“The Court, in our opinion, overlooked significant facts. Byju Raveendran deserves the opportunity to present a defense, which has been unjustly denied due to the accelerated process,” the statement read.

“Furthermore, the Delaware Court's ruling fails to acknowledge that GLAS Trust has long been aware that the funds from Alpha loans were not utilized by Byju Raveendran or any BYJU's founders for personal benefit, but rather for the advancement of Think & Learn Private Limited (TLPL),” it further noted.

Byju's Alpha, founded in Delaware in 2021, was created as a special-purpose vehicle to oversee a $1.2 billion term loan acquired from a group of global lenders.

This subsidiary operated without a business, primarily serving as a holding entity for loan proceeds. However, $533 million was diverted from Alpha to Camshaft Capital, a small hedge fund based in Miami, and subsequently funneled through affiliated entities like Inspilearn and later to an offshore trust, with no returns to Byju's Alpha, according to court documents.