Byju's Lenders To Amend $1.2 Billion Term Loan: Report Reportedly, BYJU's lenders own more than 85% of the edtech startup's $1.2 billion term loan
By Teena Jose
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Indian edtech major BYJU'S has reportedly agreed to rework its loan agreement with lenders who collectively own more than 85 per cent of its $1.2 billion Term B loan. It is worth noting that both the parties were in disagreement over the terms for some time now.
According to an ET report, BYJU'S and its Term B loan creditors have agreed to work together to finalise a term loan amendment by August 3, 2023. It is worth noting that if the loan terms are successfully renegotiated, the creditors will cease to demand accelerated repayment. More importantly, all ongoing litigation could be resolved without the lenders initiating enforcement actions.
Reportedly, BYJU's lenders own more than 85% of the edtech startup's $1.2 billion term loan.
"We look forward to completing the loan amendment over the next two weeks and are committed to doing our part to deliver on our agreed-upon timeline," the steering committee of the creditors' group said on Monday.
The disagreement between BYJU'S and the lenders rose earlier this year when the company was unable to pay $40 million in interest payments to the creditors of the Term B loan. The lenders filed a suit against the edtech company in the US courts. BYJU'S countered this with a suit of its own against the lenders in the US courts.
On July 13 that former State Bank of India chairman Rajnish Kumar and former Infosys chief financial officer Mohandas Pai had joined Byju's board advisory committee (BAC).
At present, only Raveendran, co-founder Divya Gokulnath, and Riju Ravindran are on the board of the edtech startup, which was valued at $22 billion last year.
