BYJU’s has reportedly requested more time from its creditors in order to renegotiate an agreement for its $1.2 billion term loan, which is in breach of covenants.

According to Bloomberg, creditors have until Tuesday (January 10) to sign a forbearance agreement, which would give BYJU until February 10 to negotiate broader terms for the 2021 term loan. A forbearance agreement is a temporary arrangement that allows a debtor to delay loan payments. In 2021, BYJU’s raised the debt through a term loan for the international market. The edtech decacorn, which was valued at $18 billion at the time, had planned to raise $700 million but ended up raising $1.2 billion. The proceeds were intended to be used to fund general expenses, such as supporting business growth in North America and funding inorganic growth opportunities through acquisitions.

BYJU’s has reportedly requested more time from its creditors in order to renegotiate an agreement for its $1.2 billion term loan, which is in breach of covenants.

According to Bloomberg, creditors have until Tuesday (January 10) to sign a forbearance agreement, which would give BYJU until February 10 to negotiate broader terms for the 2021 term loan. A forbearance agreement is a temporary arrangement that allows a debtor to delay loan payments. In 2021, BYJU’s raised the debt through a term loan for the international market. The edtech decacorn, which was valued at $18 billion at the time, had planned to raise $700 million but ended up raising $1.2 billion. The proceeds were intended to be used to fund general expenses, such as supporting business growth in North America and funding inorganic growth opportunities through acquisitions.