Byju's Lenders Near Settlement, Seek 30% Stake in Aakash Educational

In a major breakthrough for India's beleaguered edtech giant Byju's, its global lenders are reportedly nearing a settlement to acquire a 30% stake in Aakash Educational Services, a lucrative test-prep subsidiary. This high-stakes deal, which values Aakash at approximately $2 billion, aims to finally resolve a drawn-out $1 billion loan dispute and drop all legal actions against Byju's founder, Byju Raveendran, ending a complex legal saga that has spanned courts in India, Singapore, and the United States. The proposed settlement emerges from a protracted battle that began in early 2023 when GLAS Trust, representing a consortium of Term Loan B (TLB) lenders, accused Raveendran of mismanaging $533 million in funds, leading to Byju's filing for insolvency in India in 2024. Amidst these financial troubles, the ownership structure of Aakash, acquired by Byju's in 2021 for $1 billion, has seen significant shifts, with Manipal Education and Medical Group (MEMG) recently increasing its stake to about 60%, becoming the largest shareholder. The lenders' move to secure a substantial stake in Aakash is a strategic play to recover value from Byju's most prized asset. With both parties indicating to the National Company Law Tribunal (NCLT) that a settlement agreement is in the works, and the Supreme Court of India having already allowed Aakash to proceed with its rights issue, the focus now shifts to the finalization of this intricate deal. The next NCLT hearing is set for July 16. If successful, this resolution could offer Byju Raveendran a much-needed exit from intense legal pressure and provide a clearer path forward for Aakash, even as the broader Byju's empire continues to navigate its challenging insolvency proceedings.