Byju's Lenders Near Settlement, Seek 30% Stake in Aakash Educational
Byju's global lenders are in advanced talks to acquire a 30% stake in Aakash Educational Services to settle a long-standing $1 billion loan dispute. The deal would end all legal action against founder Byju Raveendran, marking a potential resolution to a global legal battle following Byju's bankruptcy.
Global lenders to the beleaguered edtech giant Byju's are currently in advanced negotiations to acquire a roughly 30% stake in Aakash Educational Services, a prominent offline coaching institute partially owned by the group. This potential settlement is intended to resolve an ongoing legal conflict, with creditors offering to drop all legal actions against company founder Byju Raveendran in exchange for the equity.
Background of the BYJU's Legal Dispute
The tensions stem from a high-profile dispute that began in early 2023, involving US-based lenders who accused Byju Raveendran of mismanagement. Glas Trust, serving as the trustee for the lender group, has sought the repayment of USD 1 billion in loans following the company’s decision to file for bankruptcy in India in 2024. Shankh Mitra Salary Package: All About Pay of Indian-Origin Welltower CEO, Ranked 2nd Globally.
Byju’s, which previously operated in over 21 countries and saw significant growth during the COVID-19 pandemic, has seen its financial position deteriorate significantly in recent years. Both Byju Raveendran and the company have consistently denied any wrongdoing throughout the proceedings, which have spanned courts in India, Singapore, and the United States, as per a report by ET.
The proposed settlement marks a significant development in a dispute that has been ongoing since the firm’s bankruptcy filing. Sources familiar with the private discussions indicate that the lenders are nearing an agreement to take a 30% stake in Aakash Educational Services. ChatGPT 5.6 Rollout: OpenAI To Launch Next-Gen AI Model Under New Federal Oversight and Security Review.
This move follows a dramatic decline for the startup, which was once the centre of a meteoric rise for Raveendran. By 2024, the founder had famously remarked that the company was worth zero, highlighting the scale of the firm's collapse from its peak valuation.
(The above story first appeared on LatestLY on Jun 26, 2026 07:44 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
