Davidson Kempner begins rejig of Aakash board

economictimes.indiatimes.com:

Davidson Kempner (DK) has started reconstituting the board of Aakash Educational Services Ltd (AESL) in an effort to turn around and improve the governance of the crown jewel of cash-strapped Byju’s, regarded as India’s most valued edtech company. The hedge fund is inducting at least four new independent and nominee directors in the test-prep subsidiary of Byju’s parent Think & Learn, said people in the know. The new board is expected to take charge within a fortnight.

Founder and CEO Byju Raveendran will be the sole executive representative of the parent on the AESL board.Board will scout for new auditors However, he may have to give up his position as chairman of the test-prep unit. The move to induct new directors is a likely outcome of a breach of covenant by Byju’s at the end of June, shortly after announcing a Rs 2,000 crore ($250 million) structured debt facility from DK, one of the world’s largest hedge funds. The funds were raised on the back of the future cash flows of Aakash.

ET reported on the loan covenant breach on August 2. Two members have already been inducted by DK as nominees of Think and Learn. They include Ajay Khanna, group strategic advisor and global ombudsperson of the Jubilant Bhartia Group since 2009 and founding CEO of the India Brand Equity Foundation (IBEF).

He was joined, also as an independent director from August 1, by Ambika Khanna, principal advisor, US-India Business Council and the first woman director general, international, Federation of Indian Chambers of Commerce and Industry (Ficci). Two more reputed individuals have also been approached for independent directorships. They include veteran chartered accountant Shailesh Haribhakti, who is also on the board of companies such as