Global lenders to Byju's are negotiating to acquire a roughly 30% stake in one of the company's partially owned education subsidiaries in exchange for debt relief, according to sources familiar with the matter.
The proposed settlement represents a significant step in the restructuring of the once-high-flying Indian edtech giant, which has been mired in financial distress and legal battles since filing for bankruptcy protection.
The agreement would see creditors take a substantial equity position in the business, effectively converting a portion of their outstanding loans into ownership stakes.
This move aims to reduce the company's debt burden while providing lenders with a path to recover value from the distressed assets.
The specific subsidiary involved in the talks has not been fully detailed, but the structure suggests a focus on preserving operational units with viable revenue streams.
The legal dispute surrounding Byju's has spanned multiple jurisdictions, with cases active in courts across India, Singapore, and the United States.