BYJU’s seeks more time from creditors to renegotiate $1.2 billion term loan

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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.

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BYJU’s seeks more time from creditors to renegotiate $1.2 billion term loan

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.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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