Byju’s founder told US ally to flee the US to avoid testifying: Report
Byju Raveendran, the founder of embattled edtech giant Byju’s, is alleged to have encouraged a Nebraska businessman to leave.
The United States to avoid testifying in a federal court case, reported Bloomberg. The claims were made during a hearing on Thursday in Delaware. The businessman, William R. Hailer, testified before US Bankruptcy Judge John T. Dorsey, alleging that Raveendran offered him a lucrative job and sent him a $10,700 plane ticket to Dubai just two days before he was scheduled to testify.
Hailer stated that Raveendran urged him to leave the US and reiterated a job offer with an annual salary of $500,000, suggesting that the role would start immediately if he relocated.
“He encouraged me not to testify,” Hailer said in court as per the Bloomberg report,. “He said I should come to Dubai, and the salary would start on day one.”
The case revolves around Raveendran’s efforts to regain control of Byju’s international operations, including Epic!, a US-based education software company. These operations are currently under the oversight of a court-appointed trustee. According to Hailer, the founder attempted to repurchase $1.2 billion in outstanding debt owed to US creditors in exchange for equity in Epic! However, the plan failed.
Judge Dorsey indicated that Hailer’s allegations warranted a referral to federal prosecutors, who may investigate whether a crime occurred.
Earlier this year, another associate of Byju’s reportedly fled the US to avoid testifying in the same case, resulting in a contempt of court ruling.
Hailer’s testimony also highlighted the challenges Byju’s is facing as it battles legal proceedings in both the US and India. The company is under court supervision in both jurisdictions, with Indian authorities working to address the claims of creditors.
Byju’s lenders allege that Raveendran hid $533 million in loan proceeds that should have been used to repay debts. The creditors have been pursuing legal action in US courts for over a year.
In court documents, Hailer described himself as being “used as a pawn in Byju’s manipulation of the law” and said his testimony supports the trustee’s plan to sell Epic! to help settle the company’s debts.
Neither Byju’s nor Raveendran’s representatives have commented on the allegations yet. Raveendran has previously denied accusations of wrongdoing, stating that his actions were necessary to counter aggressive tactics by creditors specialising in distressed companies.