Indian edtech titan Byju’s has made a surprise repayment proposal to lenders by offering to return its entire $1.2 billion term loan in less than six months.
The company is offering to repay $300 million of the distressed debt within three months if the amendment proposal is accepted and the remaining amount in the subsequent three months, said the people, who asked not to be identified because the talks are private. The lenders are reviewing the proposal and are seeking more details about how the repayment will be funded, the people said.
Byju’s and its lenders have been engulfed in a conflict for almost a year, during which rounds of negotiations to revamp its loan agreement have failed. The company elected to miss an interest payment on its term loan, one of the largest by a startup globally, exacerbating a dispute that underpins its mounting distress. The company has sought a swift resolution and execution of an amendment, they said.
It’s unclear whether the parties will reach an agreement, a critical step in a broader campaign to turn around the startup once deemed India’s most valuable at $22 billion. A lenders’ representative declined to comment regarding the repayment proposal from the company.
