According to a complaint filed by several of Byju's lenders, the company last year transferred more than $500 million to Camshaft Capital Fund, an investment company that William C. Morton created when he was only 23 years old.
The lenders claim that Morton's fund obtained the funds despite having no apparent formal investment training. In addition, according to court documents, Morton has registered premium vehicles, including a 2023 Ferrari Roma, a 2020 Lamborghini Huracán EVO, and a 2014 Rolls-Royce Wraith, since the transfer took place.
The accusations are the most recent development in a public dispute between lenders and Byju's, an Indian education technology company, who assert that the $533 million is security for a $1.2 billion loan. Regarding the debt, the two parties have been swapping accusations, with the lenders alleging that it is in default and Byju's accusing the lenders of utilizing predatory practices.
Byju's, previously the most valuable startup in India, is attempting to reach a settlement with its lenders and last week made an unexpected offer to pay off the loan within six months. It is in discussions to sell some of its foreign assets to private equity and strategic investors in order to finance that repayment. Byju's said it hasn't been served with copies of the case and isn't a party to the Florida court proceedings in an email statement sent late Tuesday US time.