Edtech Byju's has been consistently making headlines, and in recent times, it is because of the company's disputes with its lenders.

However, in what could come as a sign of relief for the beleaguered decacorn, it is quite likely that the Bengluru-based company might successfully finalise a settlement deal with one of creditors.

A report by the Economic Times (ET) stated that Byju's in talks with its New York-based investor Davidson Kempner Capital to resolve the repayment issues related to the $38 billion loan amount that the latter had extended to the Bengaluru-headquartered edtech. 

People aware of the development told ET that the company is ready to repay the loan amount it has taken from Davidson Kempner. However, the lender has demanded interest on the full amount for a period of one to two years instead of quarterly payments, as proposed by Byju Raveendran.

The terms and conditions for this transaction are currently under discussion, including the total amount Byju's will repay the US company. 

In May 2023, Byju's raised $250 million (around Rs 2,000 crore) through structured instruments from Davidson Kempner against its shareholding in Aakash Education Services Ltd (AESL), the chain of offline prep test classes that it had acquired in 2021.

Blackstone Group and the Chaudhry family, collectively own 30 per cent of AESL, while Byju's parent company, Think & Learn Pvt Ltd, holds 43 per cent. Byju Raveendran, founder of the eponymous brand, maintains a 27 per cent stake in it, which he acquired after paying from his own funds.

In July 2023, Davidson Kempner initiated a move to reconstitute AESL's board after alleging Byju's of financial misconduct.