A group of lenders have rejected edtech major BYJU’s proposal for one-on-one meetings, but remain open to negotiations with the company to settle lawsuits and other concerns. 

BYJU’S has already initiated the one-on-one meetings and met with 5-6 lenders separately. “The demand is only from a select group of lenders. As there are multiple lenders, the company thinks one-on-one will be more constructive and productive. It has already scheduled meetings with all the other lenders in the coming days,” said people in the know.  

The lenders who are against one-on-one meetings have asked the company to present a draft amendment proposal after BYJU’S cancelled a meeting with creditors set for Monday. The group had already signed a cooperation agreement to negotiate as a single entity, it has been learnt. 

BYJU’S troubles with its lenders have been ongoing for some time now. It had sued lenders led by Redwood at the New York Supreme Court to challenge the acceleration of the $1.2-billion Term Loan B (TLB). The edtech had to make a quarterly interest payment of about $40 million to meet the June 5 deadline on the $1.2-billion loan, which it eventually missed

The company had asked for the disqualification of Redwood, accusing the latter of purchasing a significant portion of the loan while primarily trading in distressed debt, contrary to the terms of the TLB. “BYJU’S has had to take these measures following a series of predatory tactics by the lenders, led by Redwood,” it had said in a release. 

Subsequently a group of lenders had termed BYJU’S case as “meritless” and an attempt to avoid complying with regulations. The group of ad hoc term lenders collectively owned more than 85 per cent of BYJU’S $1.2-billion term loan. 

“BYJU’S’ meritless lawsuit against its term loan lenders is simply an effort to avoid complying with its obligations, including making contractually required payments. The lender group, comprised of 21 highly respected global institutional investors, has sought to work constructively with the company over the past nine months to cure its numerous defaults and will continue to do so in good faith,” the lender group had said in its statement.