Lenders to Indian education-technology company Byju’s have alleged that it covertly transferred $533 million to a Florida-based hedge fund, adding another dimension to their legal feud with one of India’s most highly valued startups.
The case, filed by the lenders’ agent, Glas Trust Company, seeks to unwind the alleged transfer to Camshaft Capital, to recover any associated fees and to “otherwise ascertain what happened” to $533 million that purportedly served as collateral for a $1.2 billion loan.
Lenders’ court filings in Miami called Camshaft “an unproven, high-risk hedge fund” that purportedly once listed an IHOP restaurant in Miami as its principal place of business. David Massey, a lawyer for Camshaft, said it “vigorously denies” the statements made in the Miami litigation. Camshaft Capital has been managing investor money since 2020 and had about $596 million in regulatory assets under management as of last year, according to a brochure on its website.