2 Feb 2024 , 12:56 PM
Byju’s U.S. unit has initiated Chapter 11 bankruptcy proceedings in the U.S. court of Delaware, citing liabilities ranging from $1 billion to $10 billion.
Byju’s Alpha unit, in its court filing, declared assets valued between $500 million and $1 billion, with estimated creditors numbering between 100 to 199.
Founded by Byju Raveendran, the ed-tech startup was once valued at $22 billion in 2022, but has faced recent challenges including lenders pursuing bankruptcy actions.
Recent estimates suggest Byju’s valuation has plummeted to between $1 billion and $3 billion, as stated by some of its investors.
Byju’s announced plans on Monday to raise $200 million through a rights issue of shares to address immediate liabilities and cover operational expenses.
Over the past few months, the company has been in negotiations regarding the repayment of a $1.2 billion term loan and has undertaken significant layoffs.
Additionally, Byju’s has faced scrutiny from Indian authorities regarding alleged violations of the country’s foreign exchange laws.
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