In an ongoing dispute between BYJUS and its lenders, certain term holders and an agent of the term loan have filed petitions in Delaware bankruptcy court to initiate involuntary Chapter 11 bankruptcy proceedings against BYJUS' subsidiaries Epic, Tynker and Osmo.

Lenders said in a statement that the move is for the benefit of all stakeholders to protect and maximize the value of BYJUS's US-based operating entities and prevent diversion of assets and corporate mismanagement.

“We took this action to protect the value of Epic!, Neuron Fuel and Tangible Play, among other important goals. "We remain committed to the success of BYJUS and are ready to provide the necessary capital to restructure the businesses," the provisional group of term loan lenders added.

BYJU'S acquired Osmo in 2019, followed by Epic and Tynker in 2021. All three entities are the US-based guarantors of BYJU's $1.2 billion Term Loan B (TLB).

Last year, the Baiju Ravindran-led company began exploring the potential sale of two of its assets, Epic and Great Learning, with a view to raising at least $800 million to repay TLB-related debt owed to lenders, but the sale has not materialized.

The lenders entered bankruptcy proceedings following a US Bankruptcy Court ruling in May that found Baiju Ravindran's brother Riju Ravindran in contempt after he refused to disclose or confirm the details of a $533 million term loan.