Byju’s and some of its lenders have restarted negotiations in a bid to restructure its $1.2 billion term loan after the Indian education-technology firm breached certain terms of its debt agreement, according to people familiar with the situation.
The renewed talks come as the company and lenders aim to avoid escalation of a legal brawl, said the people, who asked not to identified because the talks are private. The parties are seeking a swift resolution and execution of an amendment, they said.
The lenders have delivered a detailed amendment proposal to the company that calls for a debt pay down, coupon boost and better investor protections on the loan, they added. The company told some lenders it will review the proposal and deliver its reply by early next week, the people said.
A spokesperson for company didn’t respond to a request for comment.
Byju’s and its lenders have been mired in a conflict for several months following rounds of failed negotiations to revamp its loan agreement. The company elected to miss an interest payment on its term loan in June, exacerbating a conflict with lenders that underpins it mounting distress.
The Indian firm is in advanced talks with prospective new shareholders for a $1 billion fundraising round, seeking to head off attempts by some investors to clip founder Byju Raveendran’s control over the beleaguered tech startup.
