Byju’s offers to repay $1.2-billion term loan within 6 months: Report
The lenders are reportedly in the process of reviewing the loan-amendment proposal and have sought more details about how the firm will fund the repayment
Edtech major Byju’s has promised its lenders that it will pay off its entire $1.2-billion term loan within six months, Bloomberg has reported, quoting people in the know.
The sources told Bloomberg that Byju’s has offered to pay off $300 million within three months if the lenders accept the amendment proposal, and the rest of the debt in the following three months.
The lenders are reportedly in the process of reviewing the proposal and have sought more details about how the firm will fund the repayment. Notably, all negotiations to revise the loan agreement have so far failed in the conflict that has been on for almost a year now.
Byju’s journey
In a clear sign of financial distress, Byju’s even chose to miss an interest payment on its term loan, one of the largest taken by any startup globally. Valued at $22 billion, Byju’s was once deemed India’s most valuable startup.
According to Bloomberg’s sources, the company has sought a quick resolution. Neither the company nor the lenders’ representative confirmed the development to Bloomberg.
Byju Raveendran launched the well-known learning app in 2015 under the parent company of Think & Learn Pvt. To strengthen its growth outside India, Byju’s raised the five-year loan in 2021.
According to data compiled by Bloomberg, the loan is being quoted at 49.8 cents on the dollar. The distress level is clear from the fact that anything below 70 is considered distressed.
