upGrad’s Ronnie Screwvala attacks BYJU’S after lawsuit against lenders in US; says ‘not even Netflix or HBO will buy it’ 

Ronnie Screwvala, chairman and co-founder of edtech platform upGrad, has taken a jibe against rival BYJU’s after the latter took legal recourse against the acceleration of $1.2 billion Term Loan B (TLB) and sought the disqualification of one of its lenders. Screwvala, who is also the founder of the now defunct movie production company UTV Group, said the BYJU’S saga has zero content and went onto claim that not even Netflix or HBO will buy it.  

Screwvala tweeted: “Damn with ZERO Content… not even a Netflix or HBO will buy it. While sullying India’s name as a great investment destination! Wonder what its erstwhile board thinks of their fiduciary duties—just asking (sic)”.  

The edtech firm filed a complaint in the New York Supreme Court to challenge the acceleration of the $1.2 billion Term Loan B (TLB) and seeking disqualification of Redwood, one of its lenders, according to the company statement. BYJU’s said Redwood purchased a significant portion of the loan while primarily trading in distressed debt, contrary to the TLB’s terms.  

“At the same time, Redwood – a lender known to primarily trade in distressed debt – consistently increased its exposure by acquiring a sizeable stake in the TLB with the intent of making windfall gains,” the company statement mentioned.  

The company further noted the TLB lenders “unlawfully” accelerated the TLB citing certain alleged non-monetary and technical defaults in March this year. It added: “On the back of this unconscionable acceleration of the TLB, the TLB lenders undertook unwarranted enforcement measures including seizing control of BYJU’s Alpha and appointing its own management. Not resting content with this, the TLB lenders (acting through their agent, GLAS Trust Company) commenced litigation in Delaware in an attempt to lend credence to these actions”.  

BYJU’s further said the lenders attempted to deprive BYJU’S of its contractual right to “disqualify” lenders engaged in opportunistic trades. The Delaware court said the TLB lenders “have not demonstrated either irreparable harm or the balance of the harms as required to support a provision restraining” contractual rights of BYJU’S.  

Also read: BYJU'S caught in legal tangle in US; files suit against lenders in New York Court