Byju’s lenders appoint Kroll to safeguard Great Learning’s assets

Byju’s lenders have appointed risk advisory firm Kroll to safeguard the charged assets of Great Learning Education Pte. Ltd. and Byju’s Pte. Ltd.

The risk and financial advisory solutions provider Kroll has appointed Cosimo Borrelli, global co-head of restructuring, and Jason Kardachi, Singapore and Southeast Asia lead, to safeguard the charged assets of Great Learning Education Pte. Ltd. and Byju’s Pte. Ltd.

  • Also read: Byju’s puts Epic, Great Learning on block for $750-$800 m

The appointment was made on behalf of the secured creditors of Byju’s Alpha, as part of the lenders’ exercise of their security rights following defaults by the company, said Kroll in its statement.

“A primary focus of the appointment is to protect and preserve the assets and businesses owned by Great Learning (including its subsidiary, Northwest Education Pte. Ltd.) and Byju’s Pte. Ltd. The operations of Great Learning and Northwest Education are not impacted by the appointment and all courses and programs offered by these businesses continue as usual,” it added.

  • Also read: Top-level exits at Byju’s continues

This comes at a time when Byju’s is looking to raise about $800 million by selling Great Learning and book reading platform Epic to repay the Term Loan B. Byju’s had sent a proposal to the lenders in September to repay the entire loan within six months, with an upfront payment of $300 million by December.

Byju’s took a $1.2 billion Term Loan B for a tenure of five years with a yield to maturity (YTM) of 6.78 per cent in November 2021. It had skipped its $40 million loan repayment on June 5 and later sued its lenders, alleging predatory tactics.

A Delaware court in the US denied a request by Term Loan B lenders to investigate the matter of a $500 million transfer from its US-based subsidiary, Byju’s Alpha, to other entities.

In May, Byju’s signed a definitive agreement with Davidson Kempner to raise $250 million in structured instruments, linked with the future cash flows of Aakash Educational Services. However, less than half of the fund was released as some loan agreement covenants were not met.

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