In the ongoing dispute between BYJUS and its creditors, certain term holders and an agent of the term loan filed a petition in the Delaware Bankruptcy Court to initiate involuntary Chapter 11 bankruptcy proceedings against Epic, Tynker, and Osmo, subsidiaries of BYJUS.

"This move is for the benefit of all stakeholders to protect and maximise the value of BYJUS's US-based operations and prevent diversion of assets and corporate mismanagement," Lenders said in a statement.

"Among other important goals, Epic! , we have taken this step to preserve the value of neuron fuel and tangible play.We remain committed to the success of BYJUS and stand ready to provide the necessary capital to restructure the businesses, "the temporary group of term loan lenders added.

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

Last year, the company, led by Byju Raveendran, began exploring the possibility of selling two of its assets - Epic and Great Learning - with the aim of raising at least $800 million to repay TLB-related debt owed to lenders.

Lenders entered the insolvency proceedings following a US Bankruptcy Court ruling in May that found Baiju Raveendran's brother Riju Raveendran in contempt of court after he refused to disclose or confirm statistical data on a $533 million term loan.