Byju’s Alpha faces motion for dismissal of Chapter 11 bankruptcy case

By Sarah Lizee

Olympia, Wash., Feb. 16 – Byju's Alpha, Inc. is facing a motion to dismiss its Chapter 11 bankruptcy case from Riju Ravindran and his affiliate, Tangible Play, Inc., according to documents filed with the U.S. Bankruptcy Court for the District of Delaware.

Riju Ravindran is a board member of the debtor’s former parent company, India-based Byju’s (Think & Learn Private Ltd.), and the brother of Byju’s founder and chief executive officer, Byju Raveendran. Until March 2023, he was the sole director and officer of Byju’s Alpha.

Following a change of control effectuated through GLAS Trust Co. LLC exercising its remedial rights as the lenders’ agent under a $1.2 billion term loan credit agreement, Timothy R. Pohl was appointed sole director and officer.

Ravindran maintains that Byju’s still is the parent company of the debtor, and that he was improperly removed from his role.

Counsel for Ravindran and Tangible Play said Byju's Alpha only made the Chapter 11 filing to gain a strategic advantage in the ongoing litigation between the parties.

“This case presents nothing more than a classic two-party dispute between the debtor and movants, which is already being heard in two fora,” the movants said.

“This bankruptcy proceeding is unnecessary, a waste of judicial resources, and is nothing more than forum shopping and the use of this court as a collection agency.”

The movants said the debtor filed its petition to deny Ravindran and Tangible Play the right to pursue their pending appeal in the Supreme Court of the State of Delaware, challenging the ruling of the Chancery Court in litigation that confirmed the appointment of Pohl as the director and officer of the debtor.

Ravindran and Tangible Play said the petition was filed less than 48 hours after they filed their opening brief in the supreme court.

“This Chapter 11 case is a litigation tactic conducted by GLAS and Pohl for collateral purposes, including to deny movants appellate review of Pohl’s appointment as the sole director and officer of the debtor,” Ravindran and Tangible Play said.

“At its core, this is a dispute between non-debtor parties: the lenders acting through GLAS and Pohl, on the one hand, and the actual owners of the debtor, on the other.”

Byju’s is an India-based educational technology company. The Byju’s Alpha unit is located in Lewes, Del. It filed bankruptcy on Feb. 1 under Chapter 11 case number 24-10140.

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