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On Monday, Byju’s company is set to pay the $40 million installment on its largest unrated loan of $1.2 billion. The ed-tech business must make the quarterly interest payment on June 5, which is also the payment date.
If the company fails to make the quarterly interest payment, the loan that is at the heart of the company’s financial problems will default.
According to Bloomberg, which cited anonymous sources, the $40 million payment is scheduled on June 5. The data is not freely accessible to the public. The situation is still fluid, and Byju’s payment plan may change, as reported by Bloomberg.
Byju’s company did not react to inquiries about the coupon payment. Furthermore, Houlihan Lokey Inc. personnel made no comments on the matter. Creditors hired the firm to advise them on the debt.
The loan is the largest unrated debt ever incurred by a company. After the reopening of schools following the pandemic, Byju’s laurels shifted. Profit increased dramatically following the company’s boom during the pandemic. The company’s profit dropped dramatically as the pandemic-era boom in online tutoring faded. That is why Byjus has been attempting to reach an agreement with creditors to restructure the loan.
In a report by Bloomberg, creditors requesting an early payment called off the long-term talks. The lender consortium agreed to collaborate in discussions by signing a cooperation agreement.
Previously, the huge loan was worth 64.5 cents on the dollar in September and has now risen to 78 cents.
Byju’s faces deadline: On-time payment, a ray of hope for the troubled startup
Paying the coupon amount on time will be a game changer for Byjus, allowing the company to free up time for a “large capital infusion.” The huge financial infusion, according to the business lawyer, will be utilised to pay down the loan.
Byjus has made all of his debt payments on time, and any missed payments should be regarded as a technical breach of the loan arrangement.
Notably, Byjus has missed deadlines for filing financial statements for the fiscal year ending March 31. Another setback for the company was an audit by an Indian body looking into violations of Indian foreign currency laws and the main reason behind Byju’s faces deadline.
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