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Byju's Faces Deadline For $40 Million Payment Of $1.2 bn Loan

The edtech company anticipates paying on Monday to meet the deadline of June 5

Photo Credit : Byju's/Twitter


Byju's, the most valuable startup in India, intends to pay a loan that has been the source of the company's financial woes a USD 40 million interest payment each quarter.

The edtech company anticipates paying on Monday to meet the deadline of June 5, according to the persons who asked to remain anonymous since the information is private. Plans could change as the issue is still a moving target. The USD 1.2 billion debt will default if it is not paid on time.

Byju’s didn’t respond to requests for comment about the coupon payment. Representatives for Houlihan Lokey Inc., which was hired by creditors to advise them on the loan, declined to comment.

The USD 1.2 billion debt is the largest unrated loan by a startup ever. The once high-flying company led by former teacher Byju Raveendran had been trying to strike a deal with creditors to restructure the loan, after the decline of the pandemic-era boom in online tutoring dealt a blow to its finances.

Bloomberg reported last week that the protracted negotiations were abandoned as a result of creditors' demands for a faster payback. The persons stated that the lender consortium had a collaboration agreement in place that required them to cooperate with one another during talks.

According to statistics gathered by Bloomberg, the loan, which plunged to a record low of 64.5 cents per dollar in September, is currently valued at roughly 78 cents.

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