Delaware Court Orders Edtech Founder to Pay $1 Billion for Failing to Meet Legal Obligations in Debt Case.

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Delaware Court Orders Edtech Founder to Pay $1 Billion for Failing to Meet Legal Obligations in Debt Case.

Bitget-RWA2025/11/25 07:46

By:Bitget-RWA

- Delaware court awarded $1.07B against Byju Raveendran for noncompliance in TLPL's $1B loan dispute involving Alpha Funds misdirection. - Judgment includes $533M principal, $540.6M penalties, and $10K/day contempt fines for refusing to disclose Camshaft LP transactions. - Raveendran's team claims denied due process, plans $2.5B counterclaims against GLAS Trust for alleged contractual and legal violations. - Case highlights cross-border governance tensions, with GLAS Trust alleging fund "roundtripping" whi

The Bankruptcy Court in Delaware has issued a default judgment of more than $1 billion against Byju Raveendran, the founder of Think & Learn Private Limited (TLPL), an edtech company,

following disputes related to Alpha

. The decision, dated November 20, 2025, finds Raveendran personally responsible for repaying $533 million in principal plus $540.6 million in penalties

as detailed in court documents

. The court pointed to Raveendran’s ongoing failure to comply with discovery requirements and his unwillingness to provide a comprehensive account of Alpha Funds,

which includes transactions associated with the Camshaft LP Interest

This ruling originates from a 2021 loan deal in which TLPL obtained a $1 billion term loan from American lenders, with Alpha acting as a special-purpose entity.

The lenders later claimed that $533 million of the loan

was improperly diverted, leading GLAS Trust—representing the lenders—to pursue control of Alpha through the Delaware court. Raveendran’s attorneys have pledged to challenge the decision,

asserting that the court deprived him of a fair hearing

and that GLAS Trust provided misleading information in its submissions. “The judgment was entered without giving Byju Raveendran the opportunity to defend himself,” said J Michael McNutt, a litigation advisor for Raveendran’s legal team. “The court disregarded key facts and rushed the process to prevent the truth from coming out.”

The conflict has grown into a wider legal confrontation,

with Raveendran’s side accusing GLAS Trust of aggressive and unfair practices

and preparing to seek damages exceeding $2.5 billion. These claims,

anticipated to be submitted before the end of 2025

, are directed at GLAS Trust and other parties for alleged breaches of contract and law. At the same time, the Delaware court’s order imposes a $10,000 daily contempt penalty on Raveendran for failing to comply, though these fines remain unpaid

as per court filings

This legal battle underscores the challenges of cross-border corporate oversight and debt collection. GLAS Trust and Alpha allege that funds were cycled back to Raveendran’s related businesses, while Raveendran’s representatives maintain the money was used for TLPL’s business needs

according to various reports

. The final outcome may influence how courts address noncompliance in global financial disputes.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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