BENGALURU: Indian edtech titan Byju’s has made a surprise repayment offer to lenders, in which the company has offered to repay its entire $1.2 billion term loan in less than six months, according to people familiar with the situation.
The company is offering to repay $300 million of the distressed debt within three months if the change proposal is accepted and the remaining amount in the following three months, said the people, who asked not to be identified because the talks are private. The lenders are reviewing the proposal and seeking more details on how the repayment will be financed, the people said.
Byju’s and its lenders have been embroiled in a dispute for almost a year, during which rounds of negotiations to revise the loan agreement have failed. The company has opted to miss an interest payment on its term loan, one of the largest by any startup in the world, exacerbating a dispute underpinning the company’s mounting distress.
The company has sought a quick resolution and implementation of an amendment, they said. It is unclear whether the sides will reach an agreement, a crucial step in a broader campaign to turn around the startup, once considered India’s most valuable at $22 billion.
Byju’s dollar loan trading is at a record low amid repayment talks
A representative for the lenders declined to comment on the company’s repayment offer. A spokesperson for Byju’s did not immediately respond to a request for comment.
Byju Raveendranthe son of teachers, launched his eponymous learning app in 2015. The company, whose parent is formally known as Think & Learn Pvt, raised the five-year loan in 2021 to enhance growth outside India.
The loan is quoted at 49.8 cents on the dollar, data compiled by Bloomberg show. A level below 70 is generally considered distressed.
The company is offering to repay $300 million of the distressed debt within three months if the change proposal is accepted and the remaining amount in the following three months, said the people, who asked not to be identified because the talks are private. The lenders are reviewing the proposal and seeking more details on how the repayment will be financed, the people said.
Byju’s and its lenders have been embroiled in a dispute for almost a year, during which rounds of negotiations to revise the loan agreement have failed. The company has opted to miss an interest payment on its term loan, one of the largest by any startup in the world, exacerbating a dispute underpinning the company’s mounting distress.
The company has sought a quick resolution and implementation of an amendment, they said. It is unclear whether the sides will reach an agreement, a crucial step in a broader campaign to turn around the startup, once considered India’s most valuable at $22 billion.
Byju’s dollar loan trading is at a record low amid repayment talks
A representative for the lenders declined to comment on the company’s repayment offer. A spokesperson for Byju’s did not immediately respond to a request for comment.
Byju Raveendranthe son of teachers, launched his eponymous learning app in 2015. The company, whose parent is formally known as Think & Learn Pvt, raised the five-year loan in 2021 to enhance growth outside India.
The loan is quoted at 49.8 cents on the dollar, data compiled by Bloomberg show. A level below 70 is generally considered distressed.
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