Byju’s, an Indian education-technology startup, and its lenders have reopened discussions in an effort to restructure the company’s $1.2 billion term loan. This comes after failed negotiations and a breach of certain terms in the debt agreement. The goal is to avoid a legal dispute, and both parties are working towards a quick resolution and amendment execution.

The lenders have proposed a detailed amendment, which includes a debt paydown, coupon boost, and improved investor protections on the loan. Byju’s is currently reviewing the proposal and is expected to respond by early next week.

Byju’s is also in advanced talks with potential new shareholders for a $1 billion fundraising round. This move aims to prevent certain investors from diminishing founder Byju Raveendran’s control over the struggling tech startup.

The company’s decision to miss an interest payment on its term loan in June further strained its relationship with lenders, leading to the current conflict.