Byju’s Lenders Accused of Using Bogus Loan-Default Claims (1)

Lenders to one of India’s hottest tech startups, Byju’s, created bogus default claims tied to a $1.2 billion loan as part of a scheme to gain control of the education-technology provider, the firm’s lawyer told a judge.

The distressed-debt lenders are “playing hardball” to create leverage in negotiations to restructure the loan and causing problems for Byju’s executives, Sheron Korpus, a lawyer for the Bengaluru-base company, said at a hearing in state-court in Delaware Friday.

Lenders, including US investment firms Redwood Investments LLC and Silver Point Capital LP, are “making extortionate demands” of Byju’s, putting the ed-tech ...