Byju’s surprises lenders with a $1.2 billion repayment offer

In a bid to assuage the concerns of lenders, Indian edtech giant Byjus hasproposedto pay back its whole $1.2 billion term loan in less than six months, sources familiar with the matter told Bloomberg.

According to thosesources, who requested anonymity, the corporation is willing to return $300 million of the distressed debt within three months if the amendment proposal is approved, and the remaining amount within the following three months. The sources added that the lenders are studying the idea and are looking for further information regarding how the payback will be funded.

For nearly a year, Byju’s and its lenders have been at odds while attempts to renegotiate the terms of their loan deal have fallen through. One of the largest term loans taken out by a startup in the world, the company decided to skip an interest payment, escalating the conflict that is the root of its growing hardship.

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The five-year loan was raised by the company in 2021 to support its expansion outside of India; its parent company is officially known as Think & Learn Pvt.

According to data gathered by Bloomberg, the loan is currently valued at 49.8 cents on the dollar. Generally, a rating below 70 is seen as distressed.

(With inputs from Bloomberg)

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