BENGALURU, July 24 (Reuters) – India’s Byju’s and its lenders, who own more than 85% of the edtech startup’s $1.2 billion term loan, have agreed to work towards amending that loan by Aug. 3, the steering committee of the creditors group said on Monday.
The successful execution of the loan amendment would “immediately” solve for the loan’s acceleration and end all open litigation and avoid further enforcement actions, the steering committee said in a statement.
The news comes a month after the embattled startup had filed a lawsuit against Redwood, an investment management firm that is part of this group of lenders, to challenge its acceleration of the term loan B facility and disqualify it for “predatory tactics”.
“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,” the steering committee said.
Separately, Byju’s has cut down on its office spaces in Bengaluru, two sources told Reuters on Monday, as it tries to cut costs and shore up liquidity after letting go of thousands of employees this year.
Reporting by Indranil Sarkar in Bengaluru; Editing by Savio D’Souza
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