Byju's and lenders enter fresh talks to restructure debt as legal battle looms
PTC News Desk: Byju's, the Indian education-technology firm, and its lenders have reopened discussions in an effort to restructure the company's $1.2 billion term loan. This development comes after a prolonged period of conflict and unsuccessful negotiations between Byju's and its lenders regarding the loan agreement.
Sources familiar with the matter revealed that these renewed talks aim to prevent a further escalation of a legal dispute. The parties involved are actively seeking a prompt resolution and the implementation of an amendment to address the existing issues.
The lenders have presented a comprehensive proposal for the amendment, which includes provisions for debt reduction, an increase in the coupon rate, and improved investor safeguards. Byju's has informed certain lenders that it will carefully review the proposal and provide its response by early next week, as per the insiders.
When approached for comment, a spokesperson for Byju's did not respond.
Byju's and its lenders have been entangled in a conflict spanning several months, with previous attempts to renegotiate the loan agreement proving unsuccessful. In June, the company deliberately missed an interest payment on its term loan, further intensifying the discord with lenders and exacerbating the financial strain on the firm.
Simultaneously, Byju's is engaged in advanced discussions with potential new investors to secure a $1 billion fundraising round. This effort aims to counter attempts by certain stakeholders to curtail the control of founder Byju Raveendran over the struggling tech startup.
Also Read: Amarnath Yatra 2023: J-K’s LG flags off first batch of pilgrims to cave shrine
- With inputs from agencies
