Byju’s is considered to be a successful start-up. This ed-tech firm is supposed to pay quarterly interest payments amounting to Rs. $40 million for a granted loan because of which the firm was in financial trouble.
Failure to pay the amount will make the Ed-tech firm a defaulter of a $1.2 billion loan amount. All the related representatives of the company denied any comment. This $1.2 billion load is the highest unrated loan by a start-up to date. The initial successful start-up is trying to negotiate with the creditors for loan restructuring. The deal is taken forward by the former teacher Byju Raveendran who led Byju’s saying decline in finances because of the pandemic era.
But, according to reports the creditors are declining their excuses and the lenders have signed a cooperation agreement that holds Byju’s responsible to follow the negotiations.
The loan when sanctioned was 64.5 cents a dollar which has now increased to 78 cents. Last year the firm missed its deadline to file for its finances till the 31st of March and its offices were searched by an investigation agency for foreign exchange policies. Coupon Payment will give enough time to the ed-tech firm and prevent them from “a large capital infusion”.
Currently, the company is in all debt payments any default payment of which will lead to a technical breach.