BYJU'S, lenders miss August 3 deadline to rework loan terms
What's the story
BYJU'S and its lenders missed the August 3 deadline for loan amendment talks, with hopes of a resolution after Byju Raveendran's call with lenders next week.
This delay could hinder BYJU'S ability to raise new funds, needed to address a liquidity crunch.
US-based investor Davidson Kempner, who lent $250 million in May, withheld nearly $150 million due to its tiff with lenders.
What Next?
August 3 was merely a hopeful date: BYJU'S
Although they have not been able to reach an agreement, talks have been progressing in the right direction.
A BYJU'S spokesperson said, "No deadline has been missed as August 3 was merely a hopeful date that was likely to be scheduled for a sign-off."
A steering committee of ad hoc term loan lenders had announced the August 3 deadline on July 24.
Details
BYJU'S has been at odds with lenders since December
BYJU'S raised $1.2 billion in debt through term loan B (TLB) in November 2021. Since December, BYJU'S has been at odds with its lenders.
In March, lenders accelerated the TLB over alleged defaults, and in May, they sued BYJU'S Alpha Inc in Delaware Court for allegedly hiding $500 million.
BYJU'S later sued the lenders in New York Supreme Court, contesting the TLB acceleration.