Lenders of Byju's Enlist Kroll to Secure Assets of Great Learning's Singapore Entity

11 Oct, 2023

Lenders of Byju's Enlist Kroll to Secure Assets of Great Learning's Singapore Entity

Byju's lenders have taken steps to protect their interests by appointing Kroll, a risk advisory firm, to safeguard the "charged assets" of Great Learning Pte and Byju's Singapore entity. This move comes at a crucial juncture, with Byju's considering a potential sale of Great Learning.

The term "charged assets" refers to assets used as collateral to secure a loan, allowing lenders to take possession of them in case of a borrower default. Byju's lenders have claims over 60% of Great Learning and are keen to ensure that they receive an appropriate price, especially in the context of a potential management buyout, according to an anonymous source. In recent reports, Mohan Lakhamraju, the founder and CEO of Great Learning, has expressed interest in a buyout of the company. He may explore raising funds from private equity firms to facilitate the acquisition, the source added.

Kroll has been entrusted with the task of safeguarding and preserving the assets and businesses owned by Great Learning, including its subsidiary, Northwest Education Pte Ltd, and Byju's Pte. It's important to note that the appointment of Kroll will not disrupt the operations of Great Learning and Northwest Education, and all courses and programs offered by these entities will continue without interruption.

Kroll is working closely with the management teams of Great Learning and Northwest Education to ensure that their courses and programs continue smoothly. Mohan Lakhamraju will continue to lead Great Learning, according to Kroll.

Mohan Lakhamraju expressed his appreciation for Kroll's commitment to maintaining the quality education and growth of Great Learning. He looks forward to collaborating with them to achieve their mission of enabling career success through transformative learning.

The decision to engage an advisory firm to safeguard the assets of Great Learning aligns with Byju's effort to raise approximately $800 million to $1 billion by divesting Great Learning and the book reading platform Epic. These funds are intended to repay the term loan B. In September, Byju's submitted a proposal to the lenders, outlining its plan to repay the entire loan within six months, including an initial payment of $300 million by December.