Edtech company Byju’s has agreed to rework its loan pact with lenders for its $1.2 billion Term B loan. The steering committee of ad hoc term loan lenders, who represent more than 85 per cent of Byju’s $1.2 billion term loan, announced on Monday that it will work with the edtech giant to sign and complete the term loan amendment by August 3.

“We are pleased to make progress with Byju’s toward a completed loan amendment. This announcement is consistent with our stated goal of working constructively with Byju’s management to protect the value of the franchise. 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 in a statement.

If the amendment goes through successfully, it will promptly resolve the loan acceleration, end all ongoing litigation, and prevent additional enforcement actions.

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. The edtech firm skipped its $40 million loan repayment on June 5 of this year and later sued its lenders, alleging predatory tactics.

A Delaware court in the US gave a decision in favour of Byju’s as the court 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.

This comes at a time when the company has constituted an advisory council and roped in Rajnish Kumar and T V Mohandas Pai to join the board to advise and mentor the company’s board and its CEO, Byju Raveendran.