Triller Faces Lawsuit for Alleged $35.5m Debt Non-Payment
Triller Group, a company known for its platform that competes with TikTok, is facing a legal battle over a $35.5 million debt. The creditor, a hedge fund managed by Yorkville Advisors, claims that Triller Group has not repaid a loan with a high-interest rate, leading to a lawsuit filed in the State of New York Supreme Court.
The debt stems from a merger between Triller and a Hong Kong-based financial services firm called Agba. Agba borrowed $33.5 million from the hedge fund, using convertible notes with an interest rate of 18%. Due to delays in finalizing the merger and filing necessary paperwork, the hedge fund alleges that Triller Group is now in default and owes the full amount plus interest, totaling $35.5 million.
Triller Group has stated that they plan to vigorously defend themselves against the lawsuit. The company went public in October, trading on the NASDAQ exchange. Unfortunately, the stock price has not performed as well as expected, with shares closing at $3.56 on a recent day in December, far below the initial offering price of $5.60.
Before the merger with Agba, Triller faced financial challenges related to licensing fees for music used on their platform, resulting in lawsuits from major music labels. As part of the merger agreement, Triller Group allocated shares to address legal and financial obligations, though the current value of these shares may not fully cover the outstanding debts.
The lawsuit is ongoing, and Triller Group has until January 27, 2025, to respond to the allegations. Despite the legal troubles, the company remains committed to defending its position and navigating the complexities of the situation. It’s a reminder that even in the world of finance and securities, challenges can arise that require careful attention and resolution.
