Byju Raveendran Ordered to Pay Over $1 Billion by US Court After Default Judgment

Byju’s founder, Byju Raveendran, has been ordered to pay more than $1.07 billion by a US bankruptcy court after the judge issued a default judgment holding him personally liable for the movement and concealment of funds belonging to Byju’s Alpha, the company’s US financing arm. The ruling was issued on November 20 by Judge Brendan Shannon of the Delaware Bankruptcy Court, following repeated failures by Raveendran to appear and provide required documents.

The order marks one of the most significant developments in the ongoing dispute surrounding the funds transferred out of Byju’s Alpha.

What Is Byju’s Alpha and Its Role in the Case?

Byju’s Alpha was incorporated in Delaware in 2021 as a special-purpose vehicle (SPV) to raise and manage the company’s $1.2 billion term loan from a consortium of global lenders.
The entity had no operating business and functioned solely as a holding vehicle for the loan proceeds.

Court filings show that Byju’s Alpha became the central entity through which the disputed $533 million transfer was executed, and the movement of this amount is at the core of the bankruptcy estate’s claims.

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The $533 Million Transfer to Camshaft Capital

The judgment focuses on a $533 million transfer made from Byju’s Alpha to Camshaft Capital, a small hedge fund based in Miami.
According to filings, this transfer was followed by additional movements of the investment interest through affiliated entities linked to Byju’s.

The court held Raveendran personally responsible for directing these steps, which it concluded resulted in the movement and concealment of funds.

Breakdown of the $1.07 Billion Liability

The court awarded:

• $533 million for aiding and abetting a breach of fiduciary duty

• $540.6 million for breach of fiduciary duty, conversion, and civil conspiracy

This brings his total personal liability to over $1.07 billion.

Judge Shannon noted that the relief ordered was “extraordinary”, but stated that it was justified based on the conduct presented in the record.

What Else Has the Court Ordered?

The court has also directed Raveendran to provide a full accounting of the Alpha Funds. This includes:

• The original $533 million was transferred to Camshaft Capital

• The limited-partnership interest created through that investment

• Every subsequent transfer of the funds

• Any remaining proceeds

The judge stated that this accounting is necessary because the money has not been traced, despite earlier court orders.

How the Transfers Became Central to the Dispute

According to earlier proceedings:

• After the initial $533 million was transferred to Camshaft Capital

• The investment interest was then moved to an affiliated entity called Inspirelearn

• It was later transferred to an offshore trust

• These transfers occurred without any consideration of returning to Byju’s Alpha

The bankruptcy estate argued that these steps effectively removed the US subsidiary’s only significant asset, even as lenders were attempting to enforce rights under the $1.2 billion loan.

Does Raveendran Have to Pay Immediately?

Although the ruling declares that Raveendran personally owes over $1 billion, the amount is not payable immediately.
For recovery:

• Creditors must file enforcement actions in jurisdictions where he holds assets

• They must also seek recognition of the Delaware judgment in local courts

The ruling remains binding unless it is overturned on appeal or modified in later proceedings.

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