According to people familiar with the situation, Byju’s did not pay the FOR MORE INFO CLICK THIS SITE: in interest that was due on Monday. In a statement issued on June 6, the company stated that it had filed a complaint with the New York Supreme Court regarding the loan.
After a dispute with lenders, education startup Byju’s has decided not to make further payments on a $1.2 billion loan, escalating a conflict that could jeopardize the future of one of India’s most successful startups.
According to people familiar with the situation, Byju’s did not pay the $40 million in interest that was due on Monday. In a statement issued on June 6, the company stated that it had filed a complaint with the New York Supreme Court regarding the loan.
“Given that legal proceedings are now underway in both Delaware and New York,” the company said, referring to the $1.2 billion term loan B. “As a result, BYJU’S cannot be expected to make any further payments to the TLB lenders, including any interest, until the dispute is resolved by the court.”
Byju’s was attempting to reach an agreement with creditors to restructure the loan after the pandemic-era online tutoring boom slowed and crimped its finances. However, creditors demanding an accelerated repayment ended the lengthy negotiations.
According to the people who asked not to be identified because the matter is private, the payment had not been made as of 6 p.m. on June 5 in New York. According to the sources, some lenders are considering how to deal with a potential payment default.
According to Bloomberg data, the loan fell to a low of 64.375 cents on the dollar on Monday, down from 78 cents on June 2.
Former teacher Byju Raveendran’s company had previously missed deadlines for filing financial accounts, and its offices were raided by India’s agency that investigates violations of the country’s foreign-exchange policies.
Raveendran, the son of educators, launched his own company in 2015. The company, whose parent company is formally known as Think & Learn Pvt, grew into the most valuable of the country’s startups over the last decade as demand for online education increased and a series of acquisitions occurred.
It received funding from Tiger Global Management, Mark Zuckerberg’s Chan Zuckerberg Initiative, Silver Lake Management, and Naspers Ltd. Byju’s had a $22 billion valuation and was considering a merger with a special-purpose acquisition company, or SPAC, to go public last year.
Byju’s refuted the notion that its failure to make interest payments indicated financial difficulties.
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“Byju’s remains financially robust with significant cash reserves,” the company stated in a statement. “It remains open to discussions with the TLB lenders.”
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