BYJU’S creditors seek the partial repayment of the loan amount $1.2 Billion
- ByStartupStory | December 14, 2022
The Indian multinational educational technology company Byju’s creditors seek the partial payment of the loan amount of $1.2 Billion. They have recently bought into this as they rearrange the terms of the debt. Biju’s is an edtech company that started in 2011 in Bangalore.
The creditors have hired Houlihan Lokey Inc. to advise them on rearranging the agreements after the edtech titan breaked terms and conditions. The breaked terms are like the deadline of September for filing its results of March 2022. Informed by Rothschild & Co. is representing Byju’s. Many creditors bought the debt from primary holders in September, when the loan dropped to a record 64.5 cents. Thus they are planning to get the profit by accelerating the repayment.
The Byju’s has already agreed to the rearranged terms with the lenders. They are like the agreement of providing monthly business updates, hiring a chief financial officer, and increasing the interest rate on the loan.The firm is planning to ask for the restructure of the loan as it struggles with steep losses and meeting its cost reduction targets.
Byju Raveendran and Divya Gokulnath are the founders of Byju’s. Byju’s is valued at US$22 billion and the company claims to have over 115 million registered students according to the data of 2022. The company is working with an education tutoring app that will give free access to content limited for 15 days after the registration. The app was launched in August 2015 and they offer educational content for students from classes 4 to 12 and in 2019 an early learning program has started for classes 1 to 3. They are also providing coaching to students for examinations in India such as IIT-JEE, NEET, CAT, IAS, and international examinations such as GRE and GMAT.
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