The interest proposed by Byju’s works out to 11.0-11.5% at least, they said. This may even change as the terms have not yet been finalised and the two sides were still continuing their discussions this week, the people added.Also read | Byju’s, Davidson Kempner in talks to settle dispute “This would increase the total pay-out annually by about $50-60 million,” a person aware of the matter said, adding that creditors are yet to sign off on this.
“The question is how the financing of the additional interest pay-out would be done. This is higher than the initial offer from (founder) Byju Raveendran,” this person said.Also read | Davidson Kempner sends legal notice to Byju's arm Aakash for loan covenant breachFreezing the new terms for the term loan B (TLB) has been one of the key pain points for the Bengaluru-based Byju’s for the past few months.
It has been working to secure new funds, but troubles related to test prep subsidiary Aakash Institute, TLB lenders as well as statements from investors like Prosus on corporate governance issues at the company have affected the process, multiple sources said. Last month, creditors who own more than 85% of the $1.2 billion TLB, issued a statement that they have agreed to work with the edtech firm to finalise the new terms by August 3.
However, no announcement has since been made on an agreement.Also read | More trouble for Byju’s as three board members, auditor Deloitte resign Another person aware of the discussions said Byju’s and the lenders are expected to share a formal proposal later this week to expedite closing of new terms for the TLB. An email sent to Byju’s did not elicit any response till press time Tuesday.
Read more on economictimes.indiatimes.com