The steering committee of the creditors group announced on Monday that Byju’s and its lenders, who hold more than 85% of the edtech startup’s $1.2 billion term loan, had agreed to work toward revising that loan by August 3.
The steering committee of ad hoc term loan lenders (the “SteerCo”), who jointly own more than 85% of BYJU’S $1.2 billion term loan, today stated that it and BYJU’S have agreed to cooperate in order to sign and complete a term loan amendment (the “Amendment”) before August 3, 2023. The loan’s acceleration would be promptly resolved by the Amendment’s successful execution, and all pending litigation would be put to rest while preventing additional enforcement efforts.
Regarding the predetermined timeline, SteerCo released the following statement:
“We are thrilled to be moving closer to a finished loan amendment with BYJU’S. This announcement is in line with our stated intention to cooperate with BYJU’S management to preserve the franchise’s worth. We are dedicated to doing our bit to meet the deadline and look forward to finishing the loan amendment during the coming two weeks.
The term loan lender group is advised financially by Houlihan Lokey, while its legal counsel is provided by Kirkland & Ellis LLP, Cahill Gordon & Reindel LLP, and Shearman & Sterling LLP.
Separately, according to two people who spoke to Reuters on Monday, Byju’s has reduced the number of office spaces it has available in Bengaluru as it works to reduce expenses and increase liquidity after letting go of thousands of staff this year.
