In a significant development, edtech decacorn BYJU’S has achieved a breakthrough by securing the approval of the steering committee (SteerCo) of the ad hoc lenders for its Term Loan B (TLB). The SteerCo, which collectively holds an 85% stake in the $1.2 billion TLB, has agreed to sign a term loan amendment by August 3.
Positive Impact on Loan’s Acceleration and Litigation
The SteerCo’s statement highlights that the successful execution of the amendment will immediately address the loan’s acceleration and put an end to ongoing litigation, thereby avoiding further enforcement actions. This represents a major step forward in the process of restructuring the loan.
BYJU’S Progresses Toward Loan Amendment
In response to the latest development, BYJU’S expressed satisfaction with the progress made toward completing the loan amendment. The company remains committed to working constructively with the SteerCo to safeguard the value of its franchise and ensure the agreed-upon timeline is met.
Media Reports Confirmed
The SteerCo’s statement confirms the media reports from Sunday and Monday, which indicated that BYJU’S had reached a tentative agreement with its lenders. The company succeeded in bringing the SteerCo to the negotiating table after months of extensive litigation between both parties.
BYJU’S Triumph Amidst Challenges
BYJU’S has achieved a significant victory by restructuring the term loan. The edtech company has faced numerous challenges recently. These challenges include legal disputes, resignations of key board members, and auditor changes. Furthermore, there have been mass layoffs and scrutiny from government agencies like the Enforcement Directorate (ED) and the Ministry of Corporate Affairs. Despite these difficulties, the loan restructuring marks a positive step for BYJU’S.
Despite the challenges, BYJU’S continues to make strategic moves to address its financial situation. Recently, the company vacated a few locations in Bengaluru as part of its cost-saving efforts. This loan amendment success comes after the company reported losses of over INR 4,500 Crore for the financial year ending March 31, 2021. And also achieved a valuation of $22 billion in March 2022.
BYJU’S is navigating the changing edtech sector. They successfully restructured their term loan. This step stabilizes their financial position. It helps them pursue their growth ambitions.
The post Relief for BYJU’S: Successfully secures loan amendment approval from SteerCo appeared first on StartupNews.fyi.