Byju’s Indian Affiliate Drained Cash from US Units, Lawsuit Says

(Bloomberg) — A software company controlled by Indian entrepreneur Byju Raveendran drained cash from US affiliates in violation of US bankruptcy rules, according to a lawsuit filed Tuesday in federal court in Delaware.

Money that should be used to repay creditors was instead siphoned off to Whitehat Education Technology, a court-approved trustee for the affiliates said in court papers. The trustee, bankruptcy attorney Claudia Springer, sued to get back nearly $700,000 that was moved from entities under her control.