Is BYJUS Heading for a Default? Big Deadline for $1.2 Billion Loan Repayment Nears!
Byju’s, one of the most valuable startups, intends to make a quarterly interest payment of around $40 million on a loan that has been the source of the troubled company’s financial difficulties on June 5th.
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 $1.2 billion debt will default if it is not paid on time.
The startup’s $1.2 billion debt represents the largest unrated loan in history. In order to restructure the debt, the once-promising business run by former teacher Byju Raveendran has been negotiating with lenders ever since the pandemic-era spike in online tutoring took a toll on 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.
The company will have enough breathing room to wait for “a large capital infusion” that its attorney claimed will be used to pay down the loan if it makes the coupon payment on time. According to the corporation, all debt payments have been made on time, thus any defaults should be viewed as minor technical violations of the loan arrangement.