Creditors to Byju’s, India’s most valuable startup, have pulled out of negotiations with the company to recast a $1.2 billion loan, posing a new setback to the beleaguered tech firm, according to people familiar with the matter. The talks were called off after the creditors moved court, and accused the firm of hiding $500 million of funds raised, the people said, asking not to be named as the information is not public. Lenders can now sell the term loan B securities of the firm as the restraint that came as part of the negotiations is lifted, they said. The move is a fresh challenge for one of India’s hottest tech companies, which has been working to appease creditors by offering prepayments and higher coupons to restructure the loan. Though the steering committee of lenders has discontinued the talks, the company will try to reach out to all lenders independently to renegotiate the terms, one of the people said.