US lenders on Tuesday said that the Delaware Supreme Court ruling has affirmed that Byju’s defaulted on Term Loan B while the edtech firm asserted that it has no impact on legal proceedings going on in India.

Byju’s US-based lenders on Tuesday said the Delaware Supreme Court (SC) in its September 23 order affirmed the previous ruling by the Delaware Court of Chancery and said an event of default had occurred under the credit agreement and entitled Byju’s lenders and their administrative agent, GLAS Trust, for action against the company.

Think and Learn, which owns Byju’s brand, said the Delaware SC has merely upheld a limited ruling by the Chancery court on the validity of one of their nominees as the director of the shell company, Byju’s Alpha Inc.

The issue of the validity of the acceleration and subsequent enforcement actions taken by GLAS under the credit agreement is still pending adjudication before the New York Supreme Court, the edtech firm said.

Byju’s had raised $1.2 billion Term Loan B (TLB) — a loan which is issued by institutional investors — from US-based lenders through its holding company Byju’s Alpha.

The lenders through their administrative agent GLAS Trust approached the Delaware Court of Chancery, alleging default in the payments under the loan agreement, and sought early payment of the $1.2 billion TLB.

Byju’s had contested the claim made by the US lenders.

According to a statement of the steering committee of the ad hoc group of term loan lenders, Byju’s founder and CEO Byju Raveendran and his brother Riju Ravindran voluntarily conceded that Byju’s was in default of credit agreement by October 2022.

“We are gratified that the Delaware Supreme Court decisively affirmed what we have known all along: Byju’s breached and defaulted on the credit agreement it knowingly and willingly entered into.

“Most notably, this ruling confirms that Byju’s was in default, which both Byju and Riju personally acknowledged when they signed multiple amendments to the credit agreement on Byju’s behalf from October 2022 to January 2023,” the committee said.