If the loan conditions are renegotiated successfully, the lenders are likely to stop insisting on faster repayment.

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Byju’s, a major edtech company, has made an agreement with its lenders to revise its $1.2 billion long-term loan known as Term Loan B (TLB). The company encountered repayment difficulties and faced a lawsuit due to it.

A Term Loan B is a long-term loan for financial needs. Borrowers pay interest to lenders over time and repay the principal at the loan period’s end.

According to a report by The Economic Times (ET), lenders might withdraw the demand for immediate repayment if loan terms change, potentially settling legal cases against Byju’s.

This development may provide some relief to the company, as it has been facing challenges in raising money since the previous year. On June 6, Byju’s missed a $40 million interest payment to its TLB creditors, which led to the lawsuit filed against them in New York. However, a group of lenders called the case “meritless” on June 9.

Earlier, three board members and the company’s auditor had resigned, citing concerns related to governance. On July 13, Byju’s appointed former State Bank of India Chairman Rajnish Kumar and former Infosys CFO Mohandas Pai to its board advisory committee.

Currently, the board of the edtech startup consists of only three members, namely Raveendran, co-founder Divya Gokulnath, and Riju Ravindran. The company’s latest valuation is $22 billion.

Byju’s is also yet to file its financial statements for the fiscal year 2021-22. The government, specifically the Ministry of Corporate Affairs (MCA), has directed an investigation into the company’s financial records.

Last year, Byju’s filed its FY21 results after an 18-month delay, revealing significant losses of Rs 4,588 crore on revenues of Rs 2,280 crore.

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