Byju’s Alpha Unit Files for Chapter 11 Bankruptcy in Delaware
- Byju’s US unit is controlled by lenders fighting to be repaid
- Bankruptcy will allow unit to sue to recover missing cash
A unit of Byju’s, once one of India’s hottest tech startups, was put into bankruptcy in the US by a court-appointed agent who took over the shell company after it defaulted on $1.2 billion in debt.
Byju’s Alpha Inc. doesn’t have enough money to keep fighting with its parent company about the debt, according to court papers filed by the unit’s Chief Executive Officer Timothy Pohl. The lenders required the company to file bankruptcy before they would continue funding Byju’s Alpha, the Chapter 11 petition said.