Category: Regulations & Security

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Deer management underway at 3 County park facilities

The Mercer County Park Commission is conducting deer management at Mercer County Park, Mercer Meadows and Baldpate Mountain.

This program is a method for reducing the overabundant deer herd in the greater Mercer County region.

Bow hunting, which began at all parks Sept. 9, and will take place Monday through Saturday until Feb. 17. The parks will remain open when only bow hunting is being performed.

Firearm hunting will occur at Baldpate Mountain and the area north of Lake Mercer at Mercer County Park beginning Monday, Dec. 4 through Saturday, Dec. 9, and every Wednesday through Saturday thereafter through Feb. 10. The parks/regions will be closed to the public when firearms are in use. There will be no hunting on Sunday.

Hunting is only permitted by those who have applied for and met all the requirements to participate in the program.

Read more.

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Business Culture Digital - AI & Apps Education Lifestyle Regulations & Security Science Technology

Growing cybersecurity demand opportunity to create more racially inclusive workforce

Cybersecurity experts are in demand, but the current workforce contains too few African Americans and other minorities. Creating a more racially inclusive workforce benefits everyone and is vital to better identify technological risks and vulnerabilities. David Lee, founder of The Identity Jedi, explains how the industry can improve representation and the benefits that will offer.

 

 

MARIETTA, Ga.  — African Americans make up only 9.2% of cybersecurity analysts.1 This lack of representation is not merely unfortunate; it presents multiple issues in terms of creating effective security protocols and addressing critical vulnerabilities.

 

David Lee, and expert on identity access management and founder of The Identity Jedi, explains, “We live in a world where tech is intertwined in everything we do. In order to create products that serve all people, we need to make sure that we have all people building those products.”

 

The value behind bridging the diversity gap

Diversity, equity and inclusion (DEI) has become a hot topic in all industries, with research indicating how these initiatives can improve a company’s performance and outcomes. Companies that reported above-average diversity on their management teams also reported innovation revenue that was 19% higher than that of companies with below-average leadership diversity—45% of total revenue versus just 26%.2

 

Other benefits to DEI for organizations include greater cash flow and the ability to capture new markets as well as increased profitability. Studies have found 2.3 times higher cash flow than those of companies with more monolithic staff.3 Diverse organizations are also 70% more likely to capture new markets than companies that do not incorporate under-represented groups in their recruitment processes.4 Finally, a 1% increase in racial diversity similarity between upper and lower management increases firm productivity by between $729 and $1,590 per employee per year.5

 

The first step in bridging the diversity gap is to develop representation. As Lee says, “There are a million ways to accomplish something in tech. The more diverse perspective you have, the stronger product you get. Tech is used by everyone, so it should be created by a representation of everyone.”
He challenges organizations to:

  • Actually want to solve the problem. If an organization doesn’t really care, then it will show in their efforts and results.
  • Talk to current Black employees and create a safe space for them to talk about their experience.
  • Engage with the local community, from historically Black colleges and universities (HBCUs) to Black tech organizations such as Cyversity, NSBE and ACM, among others, and connect talent departments to these pipelines.

 

Become intentional about diversity, equity and inclusion

Lee finds that having an intentional DE&I program helps bring awareness and representation to the field of cybersecurity. “Organizations need to engage with HBCU’s,” he advises “Connect with their computer science and engineering departments to host events and provide pathways to connect with candidates.”

 

Other ways that cybersecurity companies or any organization can boost their employee diversity include creating a safe space for workers to connect with their co-workers and embrace their culture via employee resource groups. Offering leadership training on bias that includes open and intentional conversations with company leaders about bias can also be beneficial.

 

Lee’s firsthand experiences as a Black professional within the technology industry inspired him to write “The Only One in the Room: The Unwritten Laws of Being Black in Tech.” The book shares the challenges he and other African Americans have faced in that sector, in addition to drawing attention to the importance of representation and diversity in reshaping the industry.

 

About The Identity Jedi

David Lee transitioned from a software engineering background to become a harbinger of change and inclusivity in the tech world. With over two decades of experience, he has left his mark on government agencies, Fortune 500 companies, and numerous fields, specializing in identity and access management. Recognizing that for technology to truly transform the world, it must embrace diversity, David serves as an agent of transformation, inspiring individuals to unlock their full potential. His influential voice and actionable insights have solidified his reputation as a respected figure in the ever-evolving tech landscape. When he speaks people listen. He is The Identity Jedi. www.theidentityjedi.com

 

References:

  1. “Cyber Security Analyst demographics and statistics in the US”; Zippia; Accessed October 26, 2023; zippia.com/cyber-security-analyst-jobs/demographics/.
  2. Rocío Lorenzo, Nicole Voigt, Miki Tsusaka, Matt Krentz, and Katie Abouzahr; “How Diverse Leadership Teams Boost Innovation”; January 23, 2018; Boston Consulting Group; bcg.com/publications/2018/how-diverse-leadership-teams-boost-innovation. 
  3. Reiners, Bailey; “50 Diversity in the Workplace Statistics to Know”; Built in; updated March 28, 2023; builtin.com/diversity-inclusion/diversity-in-the-workplace-statistics#0.
  4. Sylvia Ann Hewlett, Melinda Marshall, Laura Sherbin; “How Diversity Can Drive Innovation”; Harvard Business Review; December 2013; hbr.org/2013/12/how-diversity-can-drive-innovation.
  5. Lauren Turner, Maya Fischhoff; “How Diversity Increases Productivity”; Network for Business Sustainability; January 19, 2021; nbs.net/how-diversity-increases-productivity/.

 

–– jotopr.com

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On Instagram, journalists and creators inside Gaza see a surge in followers as they document the Israel-Hamas war

—  One journalist has added more than 12 million followers.  The work highlights some of the challenges and dangers of covering the conflict.

 

 

NBC News:

 

Before early October, Motaz Azaiza’s Instagram account documented life in Gaza to about 25,000 followers with a mix of daily life and the ongoing hostilities between Israel and Hamas.

 

That began to change in the days after Hamas’ terrorist attack on Israel and the retaliation on Gaza. Since then, more than 12.5 million people have begun following Azaiza’s feed, which has become a daily chronicle of Israeli strikes.

Many other journalists, digital creators and people active on social media based in the region have seen a similar uptick in followers. Plestia Alaqad, a journalist whose work has been featured by NBC News, has gained more than 2.1 million, according to the social media analytics company Social Blade. Mohammed Aborjela, a digital creator, gained 230,000. Journalist Hind Khoudary drew 273,000 in the last five days of October. Photographer and videographer Ali Jadallah added more than 1.1 million.

 

Those surges have made Instagram, an app generally associated with lighthearted social media posts and lifestyle influencers, a suddenly crucial view into Gaza. The app has previously been embraced by some journalists, most notably photojournalists, but the sudden increase in followers appears to have no precedent.

 

The posts can at times be difficult to absorb. Most if not all appear to be firsthand videos rather than recycled content: People pulled from rubble, children crying over the bodies of their parents, and to-camera accounts of what the journalists are seeing and feeling.

 

The unfiltered coverage, as seen in the Instagram post below, adds a unique element to the broader journalistic efforts to capture what’s happening in Gaza.

 

https://www.instagram.com/p/CzBI6aigIqX/?utm_source=ig_web_button_share_sheet

 

It’s a role that Instagram may not fully embrace (parent company Meta has broadly moved away from the news), but it appears the company is doing little to discourage the growth of the accounts. The app has rules against graphic content but does make exceptions for posts that are “newsworthy and in the public interest.” Some posts are initially covered by a “sensitive content” warning.

 

Instagram and other social media apps have come under some scrutiny over concerns that pro-Palestinian voices have been censored or suppressed. Meta confirmed in October that the company had accidentally limited the reach of some posts but said the problem was a bug that did not apply to one specific type of content and denied any censorship.

 

Meta also worked with the people behind the account Eye on Palestine after the company said it had detected a possible hacking attempt. That account had already been among the most-followed accounts focused on Palestinians before the war, with about 3.5 million followers. The account is back online after a multiday outage and now has more than 7 million.

 

The emergence of Instagram also comes as the social media platform X, once the go-to destination for journalists and witnesses to breaking news, has come under fire for its shortcomings around misinformation related to the conflict. Telegram is also a popular app for unfiltered updates but has a relatively small user base in the U.S.

 

A Meta spokesperson declined to make anyone from Instagram available for an interview.

 

Foreign journalists covering the Israel-Hamas war are facing enormous challenges obtaining firsthand information, and that dynamic is having a deep effect on the world’s understanding of what’s happening especially in Gaza, according to organizations that monitor press freedom.

 

The obstacles for reporters are wide-ranging even for a war zone. These include physical danger to journalists, lack of access to Gaza itself and the logistical challenges of operating within Gaza such as electricity and internet blackouts.

 

Many major media operations including NBC News have sent reporters to Israel to cover Hamas’ attack and the ongoing conflict, during which more than 1,400 people in Israel have been killed and more than 200 have been taken hostage, according to Israeli authorities. More than 9,000 people have been killed in Gaza from the Israeli counteroffensive, according to Gaza’s Ministry of Health.

 

Few foreign reporters are believed to be in Gaza, according to journalists outside the territory. Israel and Egypt control entry to Gaza and have not allowed in foreign journalists, according to a petition this week signed by nearly 100 French journalists demanding access to the strip, France 24 reported Tuesday.

 

Marc Owen Jones, an associate professor of Middle East studies at Hamad Bin Khalifa University in Qatar who closely follows social media, said the accounts are important “precisely because of the chaotic and toxic information environment that is so heavily mediated and sanitised.”

 

“It is so hard for anyone to get into Gaza that these journalists using Instagram are one of the only windows into bearing witness,” he said in a text message.

 

Those challenges were most apparent last Friday when a near-total communications blackout and Israeli bombing made it almost impossible to tell what was happening in Gaza. Also Friday, Reuters reported that Israel’s military had told international news organizations that it could not guarantee the safety of their journalists operating in Gaza.

 

As communication systems were gradually restored, voices from Gaza began to cut through the silence on social media.

 

A video of Khoudary and Azaiza uploaded on Saturday served as a sort of public service announcement confirming they were alive. Many commenters expressed their concern, worried that their lack of posts meant they had been hurt or killed. Neither responded to interview requests.

 

They both said they were struggling to get in touch with family members in other parts of the Gaza Strip.

 

“We don’t know where our families are and we don’t know if they’re ok and we really need to know what they’re going through because yesterday was a very bad night,” Khoudary said. “It was one of the deadliest nights on the Gaza strip.”

 

https://www.instagram.com/reel/Cy8gT7PtfwX/?utm_source=ig_web_button_share_sheet

 

More than 30 journalists and media workers have been killed in the conflict as of Tuesday, according to the Committee to Protect Journalists, a press freedom organization based in New York. Another nine journalists were reported missing or detained, it said.

 

Sherif Mansour, the Middle East and North Africa program coordinator at the Committee to Protect Journalists, said any journalist working in Gaza is in danger.

 

“In a way, the people who are needed the most are the ones who are most vulnerable right now,” Mansour, who is based in the U.S., said in a phone interview.

 

He said that Hamas has contributed to the censorship of journalists within Gaza including through harassment.

 

“It’s basically hard to get by or be able to do work, but there has always been enough people trying to tell the story,” he said.

 

A regular stream of videos and images has made it out of Gaza, but the spread of misinformation and unverified claims — often in the form of legitimate content that is old or inaccurately described — has added to the challenge of verifying information from the region. On Instagram, many of the Palestinian journalists are verified, which means Instagram confirmed the identity of the person behind the account.

 

Jones noted that declining trust in the media has pushed some people to seek information directly from firsthand sources.

 

“They are also providing unfiltered coverage that has a raw and authentic quality, and the current distrust of the mainstream media is not helped by the more sanitised (for understandable reasons) content,” he wrote.

 

 

CORRECTION (Nov. 3, 2023, 9:30 a.m. ET): A pervious version of this article misstated Marc Owen Jones’ position at Hamad Bin Khalifa University in Qatar. He is an associate professor, not assistant.

 

— Techmeme

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Environment Government Lifestyle Local News Programs & Events Regulations & Security Science

Cleanup begins on lake at Miry Run’s Dam Site 21

The first phase of development of a new passive-recreation Mercer County park began Nov. 1, with the dredging of the 50-acre lake at what is known as Dam Site 21.

Located in Hamilton, Robbinsville, and West Windsor, the 279-acre property was acquired by Mercer County in the late 1970s in order to build a dam to reduce downstream flooding and to develop the land into a publicly accessible park. The dredging will rid the lake bed of weeds, debris and sediment that has built up over the years, and improve access for boating and fishing.

“One of our longstanding goals was to take this diamond in the rough and create a gem of a park, and I’m thrilled that the Mercer County Park Commission’s plan is advancing,” said Mercer County Executive Brian M. Hughes.

The lake improvements are part of a larger Park Master Plan for the site, which was adopted by the Mercer County Park Commission in 2020. “The goal of our Master Plan is to make the largely hidden public site more accessible to County residents,” said Mercer County Park Commission Executive Director Aaron T. Watson. “But the first step in implementing our plan is to improve the lake’s flood capacity, water quality, wildlife habitat, and accessibility.”

After four years of planning, design, and permitting, the Park Commission recently awarded a contract to Capela Construction, which will begin lowering the lake and complete the dredging over the winter. During the course of this cleanup, there will be no public access to the lake area until the project is complete.

The larger Master Plan for Dam Site 21 calls for trails, parking and other park visitor facilities, and the conversion of farm fields into new natural areas for birds and other wildlife. When complete, the site’s natural features will be augmented through the establishment of up to 34 acres of new forest, which will contain an estimated 14,000 new trees, and 64 acres of new native meadows.

The Master Plan for the site, developed with Simone Collins Landscape Architecture and Princeton Hydro, was awarded the 2021 Chapter Award from the New Jersey Chapter of American Society of Landscape Architects.

For more information on the development of Dam Site 21, go to https://www.mercercounty.org/home/showpublisheddocument/24870/638066292391570000

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Locals should not feed the bears!

Residents are asked to be alert and watch for black bears as the bears forage for food ahead of their winter den season.

Though most of New Jersey’s black bears live in the northwest portion of the state, black bears have been sighted in all 21 counties.

Please take steps to secure trash cans and other potential sources of food.

Bears that find food in residential neighborhoods may learn to associate people with food. These bears may then become nuisances that cause property damage, seek handouts from people, or become dangerous. Intentionally feeding bears is illegal in New Jersey and carries a fine of up to $1,000.

Report black bear damage or aggressive bears to your local police department or to NJ Fish & Wildlife by calling 1-877-927-6337. Find more safety tips and information at the Department of Fish and Wildlife.

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Church & Dwight Co., Inc. declares 491st regular quarterly dividend

EWING, N.J. — (BUSINESS WIRE) — Church & Dwight Co., Inc. (NYSE:CHD) today reported that its Board of Directors declared a regular quarterly dividend of twenty seven and one quarter ($0.2725) cents per share.

This quarterly dividend will be payable December 1, 2023 to stockholders of record at the close of business on November 15, 2023. It is the Company’s 491st regular consecutive quarterly dividend.

 

Church & Dwight Co., Inc. manufactures and markets a wide range of personal care, household and specialty products, under the Arm & Hammer brand name and other well-known trademarks.

Contacts

Church & Dwight Co., Inc.

Rick Dierker, 609-806-1200

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Ramona Singer not attending BravoCon after using a racial slur in text exchange

Ramona Singer, late of Bravo’s “The Real Housewives of New York City,” who will soon be seen on Peacock’s “Real Housewives Ultimate Girls Trip: RHONY Legacy,” will no longer be attending BravoCon as of Tuesday afternoon — after she used a racial slur in a text exchange with a Page Six reporter.

 

The reporter was asking Singer about an allegation made in Vanity Fair’s recent investigative story about Bravo and “The Real Housewives” franchise — an assertion that Singer had used the N-word in front of a “RHONY” crew member, which caused an investigation. In the text exchange with Page Six, screenshotted in the story, Singer denied she’d said the N-word, but then abbreviated it.

 

As a result, according to a source, Singer will no longer be attending this weekend’s BravoCon, the three-day event in Las Vegas that will run from Nov. 3-5. Her name has already been removed from the BravoCon app.

 

In November 2021, Variety also reported that Singer had been investigated for making racist remarks during the filming of Season 13 of “RHONY,” which featured Eboni K. Williams as the show’s first Black cast member. That season turned out to be so toxic and unpleasant, and drew such poor ratings, that Bravo decided to split “The Real Housewives of New York City” into two different shows, one with an entirely new cast that premiered over the summer, and was well received, the other into a “Legacy” series with cast members from the show’s 13 previous seasons.

 

Though known to be a magnet for controversy, and a key player in ruining “RHONY,” Singer was nevertheless selected to be among the “Real Housewives Ultimate Girls Trip: RHONY Legacy” cast, along with Luann de Lesseps, Dorinda Medley, Sonja Morgan, Kelly Killoren Bensimon and Kristen Taekman.

 

Doing “Legacy” as a shorter “Ultimate Girls Trip” instead of an entire season was a solution born out of difficult financial negotiations with previous “RHONY” cast members — including Jill Zarin, who won’t appear on the series, after having spoken publicly about wanting more money in order to do so. “Real Housewives Ultimate Girls Trip: RHONY Legacy” will premiere in December, though the exact date hasn’t been announced yet.

 

BravoCon hasn’t even begun yet, but the drama is here already.

 

 

— Variety

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Business Economics Government Lifestyle Regulations & Security

Best’s Special Report: Insurer membership in Federal Home Loan Bank grows as Life/Annuity Companies capitalize on investment spreads

OLDWICK, N.J. — (BUSINESS WIRE) — #insurance — U.S. life/annuity (L/A) insurers increased their borrowing through the Federal Home Loan Bank (FHLB) program by 22% in 2022, as they looked to capitalize on enhanced yields in the higher interest rate environment, according to a new AM Best report.

 

U.S. insurance companies now represent nearly 9% of FHLB membership, following a 4% growth uptick last year by insurers. However, the Best’s Special Report notes that the vast majority of insurance companies do not have access to secured FHLB loans made available through the program. During 2022, only 22% of U.S. life/annuity (L/A) insurers had borrowing access, compared with nearly 7% of the property/casualty (P/C) segment and slightly less than 3% of health insurers. Borrowing in the P/C segment more than doubled to $11.2 billion in 2020 as a result of COVID-19 but has steadily declined and totaled $6.0 billion in 2022. Despite the uptick in industry borrowing, capacity remains available for most insurers across all segments.

 

“Borrowing grew in 2022 for life/annuity insurers as they sought to increase investment yields by capitalizing on the higher interest-rate environment,” said Kaitlin Piasecki, industry analyst, AM Best. “As for property/casualty insurers, their FHLB borrowing declined last year after peaking in 2020, when they sought extra liquidity as a cushion against the uncertainty brought on by the COVID-19 pandemic.”

 

The FHLB is composed of 11 regional cooperatives and are privately owned by their members. To gain membership, an insurer must actively participate in mortgage financing, be financially sound, and purchase FHLB capital stock. As members of the FHLB, insurers can apply for secured loans, known as advances, at lower rates. Historically, each insurance segment has had different reasons for using the FHLB.

 

“Life insurers use it mostly for spread/yield enhancement, while property/casualty and health insurers use it more for liquidity and short-term working capital/operations,” said Jason Hopper, associate director, AM Best.

 

AM Best estimates that 2022 new money bond portfolio yields were 5.1% for L/A insurers, a noteworthy bump from 3.6% in 2021. Insurers can borrow from the FHLB at more favorable rates than from commercial lenders, and re-invest that money into higher yielding assets, resulting in additional yield and excess spread over the cost of an FHLB advance.

 

To access the full copy of the report titled, “FHLB Life/Annuity Members Capitalize on High Rates for Spread Opportunities,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=337249.

 

To view a recent video discussion of AM Best’s report on the FHLB program, please go to http://www.ambest.com/v.asp?v=ambfhlb1023.

 

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

 

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Kaitlin Piasecki
Industry Analyst
+1 908 285 3764
kaitlin.piasecki@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Jason Hopper
Associate Director, Industry Research & Analytics
+1 908 882 1896
jason.hopper@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com

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Business Economics Perks Regulations & Security

AM Best affirms Issue Credit Ratings of 321 Henderson Receivables V LLC

OLDWICK, N.J. — (BUSINESS WIRE) — #insurance — AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IRs) of “aaa” (Exceptional) on the $74,646,000 Class A-1 8.00% Fixed Rate Asset Backed Notes, Series 2008-3 and the $9,389,000 Class A-2 8.00% Fixed Rate Asset Backed Notes, Series 2008-3 as well as the Long-Term IR of “a” (Excellent) on the $4,695,000 Class B 10.00% Fixed Rate Asset Backed Notes, Series 2008-3, issued by 321 Henderson Receivables V LLC (the issuer), a special purpose Nevada limited liability company. The outlook of these Credit Ratings (ratings) is stable.

The issuer was formed for the purpose of acquiring receivables from an affiliate; conducting activities required for maintaining and servicing the receivables; creating trust and/or other entities for the purpose of securitizing the receivables; issuing securities related to the securitization; and organizing other activities incidental to the performance of the aforementioned items.

 

Proceeds from the issuance of the notes, along with contributed equity capital, were used to purchase a pool of structured settlement and annuity receivables (receivables) from an affiliate and to fund the initial reserve requirement. The initial pool of receivables consisted of 1,844 contracts totaling approximately $189.2 million in payment obligations from 107 insurance companies. As of Aug. 31, 2023, the pool of receivables totaled approximately $55.2 million in payment obligations from 60 insurance companies. Nearly all the receivables were pursuant to a court order.

 

The overall rating actions reflect qualitative and quantitative considerations, including the default probabilities that are derived from stochastic modeling that incorporate updates on the Long-Term Issuer Credit Ratings (Long-Term ICRs) of the insurance carriers; the updated financial data; and remaining collateral information, including the reduced payment obligations of Guaranty Association Benefits Company, a not-for-profit captive insurance company formed for making payments to the payees and certificate holders of the liquidated Executive Life Insurance Company of New York. The transaction’s performance, both in terms of note balance paydown and receivable collection are in line with modeled expectations.

 

The ratings and the outlooks could be affected negatively if one or more of the following occurs: a reduction in the remaining scheduled payments; deterioration of the Long-Term ICR of the remaining insurance carriers; an increase in the level of the write-off activity; and a breach in ongoing surveillance or compliance benchmarks. However, the rating and the outlook of the Class B notes could be upgraded if there is significant improvement on the underlying cash flows.

 

These are structured finance ratings.

 

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

 

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

 

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

David Mautone
Senior Quantitative Specialist

+1 908 882 2098

david.mautone@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Wai Tang
Senior Director
+1 908 882 2388
wai.tang@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com

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Sources: Byju’s plans to sell Epic, acquired for $500M, to settle debts after defaulting on $1.2B+ in loans, and may also sell Great Learning, bought for $600M

—  Online education company was once India’s most valuable start-up but now plans asset sales to settle debts

 

 

Chloe Cornish / Financial Times:

 

 

An educational technology empire rapidly assembled by Byju’s during a pandemic funding boom is now set to be dismantled, as what was once India’s most valuable start-up looks to asset disposals to settle its pressing debts.

 

Byju’s had used loans and a war chest of more than $2bn, gathered from venture capital during the pandemic, to go on an acquisition spree, aiming to capitalise on the trend towards online learning and become a global edtech powerhouse. But overexpansion and a post-pandemic contraction in its market have left it desperate for cash to pay off creditors. The principal ones hold notes for a $1.2bn dollar-denominated term loan it took out in 2021 and has defaulted on, embroiling it in lawsuits and countersuits across the US.

 

In addition, it has borrowed $250mn this year from investment firm Davidson Kempner Capital Management, although two people with knowledge of the situation said under $100mn was disbursed before Byju’s defaulted on that loan too.

 

A lawyer familiar with the situation said he expected “Byju’s to drive a lot of M&A in the coming months.” Its efforts to realise cash through disposals are set to begin with Epic, a California-based digital reading platform, which it acquired in 2021 for $500mn. One person familiar with the matter said term sheets had been drawn up for a deal and another said Moelis, the investment bank, was running the sales process. Moelis declined to comment.

 

Nirgunan Tiruchelvam, head of consumer and internet at Singapore-based Aletheia Capital, said “a battle for the spoils” was beginning, as “various parts of the business could be sold to people who are interested in buying an asset at a discount to its fair value.”

 

Those spoils could include Byju’s subsidiary Great Learning, which offers online higher education courses. Through legal action, Byju’s term lenders won the right to appoint financial firm Kroll to oversee the Singapore-based edtech company. Byju’s acquired Great Learning just two years ago for $600mn, but two people familiar with the matter said it was likely Great Learning would ultimately be sold to help settle debts.

 

Byju’s financial problems also extend to the presentation of its accounts. It is roughly one year late in filing them for its financial year that ended in March 2022 and its chief financial officer Ajay Goel is quitting the company at the end of this week. Goel is rejoining Indian conglomerate Vedanta as CFO, after only leaving it in April to join Byju’s. He told investors in June that the audit to March 2022 would be completed by September.

 

The edtech company, which delayed reporting a $560mn loss in its 2020-2021 year, has suffered the resignation of its auditor Deloitte and of three board members representing its backers. One of them, Prosus, has written down its stake to give Byju’s an implied valuation of just $5bn, down from $22bn last year.  Byju’s did not respond to a request for comment.

 

 

 

— Techmeme