Byju’s has put forth a proposal to fully repay its outstanding $1.2 billion term loan within a short span of six months. This move comes amid an ongoing dispute with its lenders that has lasted nearly a year.
Sources who wished to remain anonymous revealed to Bloomberg that the Indian ed-tech giant has laid out a plan to remit $300 million within the first three months, conditional on acceptance of the amendment proposal. The balance would be cleared in the succeeding three months. However, lenders are currently scrutinising the proposal, with particular attention to the sources of repayment. LiveMint could not independently verify the report.
The friction between Byju’s and its lenders centres on renegotiations of its loan agreement, which have been fruitless thus far. The tension escalated when the company opted not to make an interest payment on the term loan, one of the most sizable taken by a startup worldwide.
Founded in 2015 by Byju Raveendran, whose parents were both educators, Byju’s raised the five-year term loan in 2022 with an aim to expand its footprint beyond India. The startup, officially known as Think & Learn Pvt, was at one point valued at a staggering $22 billion, making it one of India’s most valuable startups.
The present status of the loan is hardly encouraging, being quoted at just 49.8 cents on the dollar, Bloomberg added. Generally, any figure below 70 cents is classified as distressed, highlighting the gravity of the situation.
Spokespersons from both parties remained tight-lipped about the situation. A representative for the lenders refused to make any comments concerning Byju’s proposal while Bloomberg’s queries directed at Byju’s spokesperson received no immediate reply.
(With Bloomberg inputs)
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Updated: 11 Sep 2023, 01:37 PM IST
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