Edtech start-up Byju’s and lenders renew talks to restructure $1.2 bn loan

Byju’s (Photo: Bloomberg)

Byju’s and some of its lenders have resumed negotiations in a bid to restructure its $1.2 billion term loan after the Indian education technology company breached certain terms of its debt agreement, according to people familiar with the situation.

The people, who asked not to be identified because the talks are private, said the resumption of talks comes as the company and the lenders aim to avoid an escalation of the legal quarrel. They said the two sides are seeking a quick solution and implementation of an amendment.

They added that the lenders submitted a detailed amendment proposal to the company calling for debt repayment, coupon enhancement and better investor protection on the loan. The sources said the company has told some lenders that it will review the proposal and submit its response by early next week.

A company spokesperson did not respond to a request for comment.

Byju’s and its lenders have been at loggerheads for months after rounds of failed negotiations to renew its loan agreement. The company chose not to make interest payments on its term loan in June, exacerbating an escalating conflict with lenders that backed it.

The Indian company is in advanced talks with potential new shareholders for a $1 billion fundraising round, in a bid to fend off attempts by some investors to curb founder Byju Raveendran’s control of the beleaguered tech startup.

First published: Jul 01 2023 | 8:43 a.m ist