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The Delaware Supreme Court ruling has affirmed that edtech firm BYJU’s has defaulted on Term Loan B.

BYJU’s US-based lenders on Tuesday said the Delaware Supreme Court 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.

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

Just a week ago, US-based creditor Glas Trust Company LLC had earlier told the Supreme Court that it had wrongly been removed from the committee of creditors (CoC) by the interim resolution professional (IRP) dealing with the insolvency proceedings against edtech firm BYJU’S.

The submissions were made by senior advocate Kapil Sibal, appearing for the US firm, before a bench comprising Chief Justice D Y Chandrachud and Justices JB Pardiwala and Manoj Misra.