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.