Kroll Steps in to Shield Key Assets of Great Learning as Byju’s Navigates Sale Amid Financial Strain
Summary
- Byju’s creditors hire Kroll to protect assets of Great Learning Pte and Byju’s Singapore entity during potential sale negotiations.
- Kroll’s appointment aims to safeguard the assets following defaults by Byju’s Alpha Inc, ensuring business continuity for Great Learning and its subsidiary.
- Amidst financial struggles, Byju’s seeks to raise funds through the sale of Great Learning and Epic, with extensive company restructuring and significant layoffs underway.
Byju’s creditors have enlisted the services of Kroll, a prominent risk advisory firm, to oversee the safeguarding of key assets belonging to Great Learning Pte and Byju’s Singapore branch. This move comes amid Byju’s considerations to potentially sell Great Learning.
On October 11, Kroll announced that Cosimo Borrelli, their global co-head of restructuring, and Jason Aleksander Kardachi, head of the Singapore office, have been tasked with protecting the assets of Great Learning Education Pte Ltd and Byju’s Pte Ltd. This decision was made by the secured creditors of Byju’s Alpha Inc in response to the company’s defaults, as part of the creditors’ enforcement of their security rights.
Byju’s has declined to comment on the matter.
Sources, who prefer to remain anonymous, reveal that Byju’s lenders hold a 60 percent stake in Great Learning. The lenders are particularly focused on securing a fair value in the event of a management buyout. Recent reports suggest that Mohan Lakhimraju, founder and CEO of Great Learning, is considering a buyout, potentially seeking funding from private equity firms.
Kroll’s primary responsibility is to ensure the protection and maintenance of Great Learning’s assets, including its subsidiary, Northwest Education Pte Ltd, and Byju’s Pte. Kroll has assured that the operations of Great Learning and Northwest Education will continue normally, with all courses and programs running as scheduled.
Mohan Lakhimraju remains at the helm of Great Learning, working in collaboration with Kroll to ensure the ongoing success and growth of their educational programs. “I am pleased with Kroll’s dedication to maintaining the high quality of Great Learning’s educational offerings and am looking forward to working together to fulfill our mission of transformative learning,” stated Lakhimraju.
This strategic step to secure Great Learning’s assets is taken while Byju’s is actively seeking to raise between $800 million and $1 billion from the sale of Great Learning and Epic, a book reading platform. The goal is to manage the repayment of the term loan B. Byju’s had proposed to the lenders a repayment plan that includes an initial payment of $300 million by December.
Byju’s has been grappling with a liquidity crisis, struggling to finalize a vital funding round since early this year. The company is undergoing significant restructuring, including cost-cutting measures and layoffs of approximately 10,000 employees, along with relinquishing office spaces in cities like Bengaluru and Delhi NCR.
