Indian education startup Byju’s said on Tuesday it filed a suit against investment management firm Redwood to challenge the acceleration of a $1.2 billion term loan B (TLB) and to disqualify Redwood for its predatory tactics.

The edtech, which has filed a suit in the New York Supreme Court, said Redwood, contrary to the terms of TLB, purchased a significant portion of the loan while primarily trading in distressed debt.

On March 3, 2023, lenders accelerated the TLB on account of certain alleged non-monetary and technical defaults at Byju’s, seizing control of Byju’s Alpha and appointing its own management, the company said in a statement.

Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.