company has promised to pay back its whole $1.2 billion term loan in less than six months, according to sources familiar with the matter.
Indian edtech giant Byju’s has taken lenders by surprise with its proposed plan to repay its entire $1.2 billion term loan in under six months, sources with knowledge of the matter have revealed.
As per these sources, Byju’s is offering to repay $300 million of the distressed debt within three months if the proposed amendment is approved, with the remainder to be repaid in the subsequent three months. Lenders are currently assessing the proposal and seeking additional information regarding the funding source for this repayment.
For nearly a year, Byju’s and its lenders have been locked in disputes as attempts to renegotiate the loan terms proved unsuccessful. This loan, one of the largest ever taken out by a startup globally, saw the company skip an interest payment, exacerbating the ongoing challenges it faces.
Byju Raveendran, the company’s founder, introduced his own learning software in 2015. Byju’s secured the five-year loan in 2021 to facilitate its expansion beyond India. The parent company operates under the official name Think & Learn Pvt.
Data indicates that the loan’s current valuation stands at 49.8 cents on the dollar, typically considered a distressed rating when below 70.