Byju's crisis: Legal battle postponed; aims for out-of-court settlement

Edtech firm Byju's and its lenders have decided to postpone the legal battle that is going on in the US courts until Oct 6. According to Mint, this extension is aimed at providing more time to achieve an out-of-cout settlement.

Mint quoted a cout order dated August 24 and said that the parties are working on reaching a forbearance agreement, and discussions are still ongoing. As per the report, both parties are negotiating new terms, including upfront payments of $200 million and 12-13% interest, with restricted tenure of 3-5 years

Also Read: Byju's defaults on $40 million loan payment; sues lender Redwood for predatory tactics

Byju's in June decided against making anymore payments on a $1.2 billion loan and skipped paying $40 million on its due date of 5th June. The company went on to sue investment management firm Redwood by challenging the acceleration of a $1.2 billion term loan B (TLB) facility in the New York Supreme Court.

Byju's had also claimed that contrary to the conditions of the loan facility, Redwood purchased a significant portion of the loan while primarily trading in distressed debt.