BYJU’S Proposes To Repay The Entire $1.2 Bn To Lenders In Less Than 6 Months

Edtech Giant BYJU’S In Talks With PE Firms For Aakash Sale

SUMMARY

BYJU’S has made an offer to repay $300 Mn of the distressed debt within three months if the lenders accept its amendment proposal

The edtech major plans to repay the remaining amount of the $1.2 Bn term loan B in the subsequent three months

BYJU’S and its lenders of the TLB have been caught up in severe conflict for almost a year when several negotiations to alter the loan repayment terms have failed

In a rather surprising move, beleaguered edtech decacorn BYJU’S has reportedly offered to pay back the entire $1.2 Bn term loan to its lenders in less than six months.

The edtech major made an offer to repay $300 Mn of the distressed debt within three months and the remaining amount in the next three months if its amendment proposal is accepted, Bloomberg reported citing sources.

BYJU’S did not respond to Inc42’s inquiry for comment on the matter.

It must be noted that BYJU’S and its lenders of the $1.2 Bn term loan B (TLB) have been caught up in severe conflict for almost a year. Several negotiations to alter the loan repayment terms have failed over the last few months.

The lenders are currently reviewing the company’s proposal and seeking details as to how the repayment would be funded.

Sourced told the publication that BYJU’S is trying to make a swift resolution to the matter and to execute the amendment.

Meanwhile, Manipal Group chairman Ranjan Pai reportedly finalised an $80 Mn investment in BYJU’S offline test prep arm Aakash, which would be utilised by the edtech firm to repay Davidson Kempner. Davidson Kempner is one of the lenders to BYJU’S TLB.

The edtech decacorn is also in talks for raising a $1 Bn funding round for quite some time now.

The development comes a couple of weeks after BYJU’S sued its lenders in a U.S. court, alleging harassment in the recovery of the TLB, after the firm missed the repayment for the loan. The firm wanted to disqualify Redwood as a lender.

This lawsuit was initiated after the lenders claimed that BYJU’S had breached various agreements and subsequently withdrew from discussions aimed at restructuring the loan.

Earlier this month, it was also reported that lenders and BYJU’S were also engaged in negotiating an out-of-court settlement over the loan repayment.

Amid all these, the company is also going through an internal restructuring. Last month, it laid off 100 employees, citing performance issues.

The edtech decacorn has also witnessed the exits of several folks from its leadership team. These include — chief business officer Prathyusha Agarwal; Himanshu Bajaj, the business head of BYJU’S Tuition Centre; BYJU’S SVP for international business, Cherian Thomas and Abhishek Maheshwari, CEO of Aakash Educational Services.

On the other hand, it roped in former Infosys executive VP and HR head Richard Lobo as an exclusive advisor to transform its HR function. Prior to that, the startup hired former upGrad CEO Arjun Mohan as the CEO of its international business.

In July, the firm appointed former SBI Chairperson Rajnish Kumar and ace investor TV Mohandas Pai as members of its advisory council.

Meanwhile, BYJU’S is yet to file its FY22 financial results statement, which is also a major bone of contention that led to the company losing the confidence of some of its board members in the recent past. The company had claimed that it would file its FY22 financials in September and FY23 in December.