New Delhi, Nov 10 (PTI) A Delaware court has upheld the takeover of BYJU's Alpha by US-based Term Loan B lender, sources said.
BYJU's Alpha is the US-based subsidiary of edtech major BYJU's.
The court ruled that lenders were within their rights to replace a relative of BYJU's Founder Byju Raveendran in the board of Byju's Alpha with their nominee.
"Lenders had already taken control of BYJU'S Alpha, which the edtech major had opposed. The court has ruled in favour of the lenders. However, the takeover does not have any material impact on BYJU's operations," the source said.
BYJU's Alpha had received USD 1.2 billion Term Loan B (TLB) from lenders, including Redwood Investments LLC.
BYJU's used the TLB -- a loan issued by institutional investors -- to fund its overseas subsidiary operations.
TLB Lenders had questioned BYJU's for taking out USD 500 million from BYJU'S Alpha.
BYJU's is in the process to settle the entire USD 1.2 billion in two tranches through the sale of entities like Epic and diluting stake in some of the other entities, including Aakash Education Services. PTI PRS TRB