Byju's reaches agreement to rework terms of $1.2 billion loan: Report

Byju's has reached an agreement with lenders to rework its $1.2 billion Term B loan, The Economic Times (ET) reported on Monday. This comes as the edtech major is facing trouble in making repayments and is fighting a lawsuit for the same.

A Term Loan B (TLB) is taken for long-term finances and the lenders are given interest payments by the borrower. The payment of the principal amount is done at the end of the tenure.

According to ET, if the loan terms are reworked successfully, the creditors are expected to drop their demand for accelerated repayment. The ongoing cases against Byju's are also likely to be dropped.

Also Read: Govt orders inspection of Byju's amid financial, corp governance concerns

This might come as a relief to the company that has been struggling to raise money since last year. On June 6, Byju's had missed a $40 million interest payment to its TLB creditors. Later, it filed a lawsuit against their demand for "accelerated repayment" in New York.

On June 9, a group of lenders issued a statement saying that the case was "meritless".

Earlier, three of the company's board members and its auditor decided to exit citing "governance issues". Later on July 13, Byju's roped in former State Bank of India Chairman Rajnish Kumar and former Infosys chief financial officer Mohandas Pai to its board advisory committee.

Currently, only Raveendran, co-founder Divya Gokulnath and Riju Ravindran are on the board of the edtech startup. It was last valued at $22 billion.

The company is also yet to file its financial statements for 2021-22 (FY). It has also attracted the attention of the government. The Ministry of Corporate Affairs (MCA) has been directed to look into its books.

Also Read: Byju's vacates its biggest office at Kalyani Tech Park, Bengaluru: Report

Byju's had filed its FY21 results after an 18-month delay on September 14 last year, which showed ballooning losses at Rs 4,588 crore on revenues of Rs 2,280 crore.