Davidson Kempner Capital Management is reviewing its decision to provide Indian ed-tech firm Byju’s with a $250 million loan, amid a deepening crisis at the firm, and to date, has not fully disbursed the funds, according to a report by Bloomberg.
The report cites unnamed sources as revealing that Davidson Kempner, which is one of the world’s biggest hedge fund firms with more than $38 billion in assets under management, has so far provided less than half of the $250 million of convertible debt it originally offered, as the Indian startup has failed to meet some loan agreement covenants.
Questions have been raised about accounting practices at Byju’s after the company lost its auditor Deloitte Haskins & Sells, and three board members from backers Peak XV, Prosus NV and the Chan-Zuckerberg Initiative, in the same week.
