Byju's Asks Lenders for More Time to Restructure $1.2 Billion Debt

Byju's, the world's most valuable edtech startup, is seeking more time from creditors to renegotiate an agreement governing a $1.2 billion loan that is in breach of covenants, according to people with knowledge of the matter.

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The creditors have until Tuesday to sign a forbearance agreement, which will give the company time till Feb. 10 to negotiate broader terms on the term loan, the people said. Byju's hadn't met the deadline to disclose financial results for the year ended March 31, they said.
Byju's is working to appease creditors and investors who are already concerned about the company's mounting losses. The India-based firm has offered to raise fresh equity capital and provide creditors with a so-called quality of earnings report and cash verification statements from external auditors. Reworking the agreement requires approval from a simple majority of lenders.

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An email seeking comment from Byju's was not responded to by a representative. The lenders of Byju's are seeking a quicker part-payment of the $1.2 billion loan. This is in order to get a better return on their investment. The company has been growing rapidly and is now valued at $10 billion.

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Byju's founder is raising funds to buy back as much as 15% of the firm. This move will help the company solidify its position as one of the leading education technology firms in the world. Byju's has been growing rapidly, and this move will help ensure that the company can continue to invest in its future.
Byju's an Indian edtech company, is targeting an IPO that would value its tutoring arm at up to $4 billion. This would make it one of the most valuable edtech companies in the world. Byju's has seen explosive growth in recent years, thanks to its popular mobile app and online courses. The company is now looking to tap into the public markets to raise more capital to fuel its expansion.

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One of India's most valuable startups is targeting profitability by March 2023. The company, which is currently valued at over $1 billion, has been investing heavily in growth over the past few years. However, it now appears to be shifting its focus to profitability. This is a smart move, as it will likely help the company attract even more investment.

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Some creditors are seeking quicker repayment of the loan from Byju's US unit, using cash reserves of about $850 million. This is after the parent company missed a September deadline to disclose its earnings. Any accelerated repayment will be a setback for the company, which is struggling with steep losses and meeting its cost reduction targets.

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The loan was indicated at 81.9 cents on the dollar on Monday, according to data compiled by Bloomberg. Lenders who bought the debt from primary holders in September, when the loan slumped to a record 64.5 cents, were seeking to profit from accelerated repayment, as was indicated by people familiar with the situation.
This loan, priced at 550 points over Libor in November 2021, is one of the largest unrated term loan B offerings ever from a new-age company. This is according to JPMorgan Chase & Co., one of the deal's bookrunners.