BYJU'S lenders hire Kroll to safeguard assets of Great Learning
Kroll, a risk advisory firm, has been hired by BYJU'S lenders to protect the charged assets (assets used as collateral to secure loans) of Great Learning and BYJU'S Singapore branch. This move comes as the edtech giant looks into selling Great Learning. Cosimo Borrelli, global co-head of restructuring, and Jason Aleksander Kardachi, Kroll's Singapore chief, will be in charge of safeguarding assets for Great Learning Education Pte Ltd and BYJU'S Pte Ltd on behalf of BYJU'S Alpha Inc.'s secured creditors.
Ensuring right price for Great Learning
Byju's lenders have a 60% stake in Great Learning and are working to secure the best price for it, particularly if there's a management buyout. Last week, news surfaced that Mohan Lakhimraju, founder and CEO of Great Learning, might be considering a buyout of the company. Lakhimraju could seek funding from private equity firms to help with the buyout. Kroll's goal is to protect and maintain the assets owned by Great Learning, including Northwest Education Pte Ltd and Byju's Pte.
Continuation of Great Learning operations
Kroll's appointment won't affect the operations of Great Learning and Northwest Education. All programs and courses offered by these businesses will carry on as usual. Kroll is closely working with Great Learning and Northwest Education management to ensure their courses continue, with Mohan Lakhimraju staying in charge of Great Learning. Lakhimraju has expressed his satisfaction with Kroll's dedication to high-quality education and growth at Great Learning.
BYJU'S plans to repay Term Loan B
BYJU'S is looking to raise $800 million to $1 billion by selling Great Learning and Epic to repay term loan B. In September, BYJU'S told lenders it would repay the loan within six months, making an upfront payment of $300 million by December. The company has experienced a liquidity crunch since it hasn't closed a funding round since the beginning of the year. BYJU'S also laid off nearly 10,000 employees and gave up office spaces in Bengaluru and Delhi NCR.
