Global lenders of BYJU’S are reportedly negotiating to acquire a 30% stake in Aakash Educational Services, a coaching institute partly owned by the embattled edtech firm, in exchange for dropping legal actions against founder Byju Raveendran.This potential settlement, valued at $2 billion, seeks to resolve a protracted legal battle stemming from allegations of default on a $1 billion loan taken by BYJU’S in 2021.The negotiations come after both parties indicated to the Bengaluru bench of the National Company Law Tribunal (NCLT) that they are working towards a settlement agreement.The court has deferred the case for further hearings, with the next date set for July 16. The legal issues began in early 2023 when GLAS Trust, acting on behalf of BYJU’S Term Loan B (TLB) lenders, accused Raveendran of misappropriating funds, specifically $533 million through a US-based subsidiary, BYJU’S Alpha.BYJU’S, which acquired Aakash for approximately $1 billion in 2021, has faced significant financial pressure following a decline in the online education boom post-pandemic.The company entered insolvency proceedings in 2024 due to unpaid dues, while GLAS has pursued lawsuits in the US. The lenders are concerned that Aakash’s ongoing rights issue, aimed at raising ₹500 crore, could further dilute BYJU’S stake and impede creditor recovery.Meanwhile, Manipal Education and Medical Group (MEMG) has increased its stake in Aakash to about 60%, becoming the largest shareholder. The Supreme Court has allowed Aakash to proceed with its rights issue, stipulating that BYJU’S parent company can apply for shares proportionate to its original holding.
