Byju's and its lenders have reached an agreement to complete the amendment of the conditions of a $1.2-billion term loan by Aug. 3.
The steering committee of the lenders, which collectively own more than 85% of the term loan, said once the amendment is successful, it will "immediately solve for the loan's acceleration and end all open litigation while avoiding further enforcement actions", according to a statement on Monday.
It said the announcement was consistent with its stated goal of working constructively with the education technology major's management to protect the value of the franchise.
"We look forward to completing the loan amendment over the next two weeks and are committed to doing our part to deliver on our agreed-upon timeline," it said.
The development largely puts an end to the Byju Raveendran-led startup's woes with its lenders, which started several months ago. The agreement follows several rounds of failed negotiations to restructure the loan terms.
The Bengaluru-based startup had even opted to miss a $40 million interest payment on its term loan in June, challenging the "acceleration" of the $1.2 billion term loan and disqualifying Redwood—an agent of the lenders—who it said had indulged in a series of "predatory tactics".
The past 12 months have seen Raveendran and Chief Operating Officer Mrinal Mohit reach out directly to employees amid resignations by statutory auditor Deloitte and three board members representing key investors in the company. It has also seen valuation cuts by prominent investors, searches by the Enforcement Directorate, layoffs, and delayed financial results.
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