Judge says Byju’s official broke duty to lenders by hiding $533 million

A top official of Indian tech firm Byju’s violated his fiduciary duty to lenders by wrongly hiding $533 million from them, according to a US court ruling Friday, a win for creditors vying to collect on a defaulted $1.2 billion loan.

Byju’s fraudulently transferred at least part of the money to a small hedge fund based in Miami to keep it out of lenders’ hands, US Bankruptcy Judge John Dorsey also ruled. The two rulings entitle lenders to collect a financial damages award from the company, with the amount is set to be determined in a separate hearing, according to Dorsey’s ruling.