According to persons with knowledge of the issue, Byju’s and some of its lenders have reopened talks in an effort to restructure its $1.2 billion term loan after the Indian education-technology company broke several of the terms of its debt deal.
According to the persons who asked to remain anonymous since the discussions are confidential, the company and lenders have resumed talks in an effort to prevent the escalation of a legal dispute. The parties stated that they wanted a modification to be executed quickly.
The company has received a detailed amendment proposal from the lenders that includes recommendations for a debt payoff, an increase in the loan’s coupon rate, and improved investor protections, they continued. According to the persons, the business informed some lenders that it would study the plan and submit its response by early next week.
Requests for comment from a company spokeswoman went unanswered.
After multiple rounds of fruitless attempts to modify its loan arrangement, Byju’s and its lenders became embroiled in a dispute that has lasted for several months. The corporation made the decision to skip a term loan interest payment in June, escalating a dispute with lenders that is the root of its growing problems.
In an effort to thwart attempts by some investors to curtail founder Byju Raveendran’s authority over the troubled software business, the Indian company is in advanced discussions with potential new shareholders for a $1 billion funding round.