While BYJU’S said the talks for the loan amendment are progressing in the right direction, the two parties are yet to put pen to paper
The steering committee (SteerCo) of the ad hoc lenders, who collectively own 85% of term loan B, had committed to an August 3 timeline
The term loan B, taken out by BYJU’S in November 2021, has been shrouded in controversy since last December
BYJU’S and its lenders have missed the August 3 timeline to sign an amendment to the terms of the edtech giant’s $1.2 Bn Term Loan B (TLB), adding to the clouds hanging over the startup.
While BYJU’S said the talks for the amendment are progressing in the right direction for the Term Loan B, the two parties are yet to put pen to paper.
The steering committee (SteerCo) of the ad hoc lenders, who collectively own 85% of the TLB, had committed to an August 3 timeline to sign and complete the amendment of the terms of the loan, though the edtech company never committed to such a timeline.
Commenting on the development, a BYJU’S spokesperson told Inc42, “The discussions are going on and it’s progressing well in the right direction and expected to close at the earliest. In fact, the next meeting with the lenders is scheduled for early next week.”
BYJU’S CEO Byju Raveendran is scheduled to hold talks with the lenders next week. “No deadline has been missed as August 3rd was merely a hopeful date that was likely to be scheduled for a sign-off,” the spokesperson added.
A mail sent to the lenders did not elicit any response till the time of publishing this story.
The timeline for reaching an amendment was announced on July 24 by the SteerCo. At the time, the SteerCo said that successful execution of the amendment would immediately solve the loan’s acceleration and end all open litigation while avoiding further enforcement actions, which would be a major relief for the beleaguered edtech giant.
The TLB, taken by BYJU’S in November 2021, has been shrouded in controversy since last December. The back-and-forth between the edtech and its lenders quickly devolved into litigation from both parties.
In March, the lenders first accelerated the TLB citing certain alleged non-monetary and technical defaults. Later, in May, the lenders sued the edtech’s wholly-owned subsidiary Byju’s Alpha in Delaware on allegations of hiding $500 Mn from them.
BYJU’S countersued the lenders in the New York Supreme Court a few weeks later, challenging the acceleration of the TLB. It also skipped payment of $40 Mn that was due.
The edtech giant is also said to be engaged in a tussle with Davidson Kempner, which gave a debt funding of $250 Mn to BYJU’S in May this year. Davidson Kempner has reportedly taken control of Aakash, though both parties are tight-lipped about the goings-on in the Aakash boardroom.
