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, according to those acquainted with the situation
The edtech company expects to pay 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.
Requests for comment regarding the coupon payment received no response from Byju’s. Houlihan Lokey Inc. representatives declined to comment after being contacted by creditors to advise them on the loan.
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.
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.
