Byju’s files suit challenging loan acceleration, seeks Redwood’s disqualification

Indian education technology startup Byju’s filed a suit against investment management firm Redwood to challenge the acceleration of a $1.2 billion term loan B facility and disqualify the lender for its “predatory tactics,” the company said on Tuesday.

Byju’s, which filed the suit in the New York Supreme Court, said Redwood purchased a significant portion of the loan while primarily trading in distressed debt, which was contrary to the conditions of the term loan facility.

Byju’s also issued a notice to Redwood entities disqualifying the investment firm as a lender with critical rights under the term loan norms once it takes effect, the company said in a statement.