Troubled Byju’s Misses Target To Amend $1.2 Billion Loan Terms
(Bloomberg) -- Beleaguered ed-tech firm Byju's missed yet another target date set by its creditors to amend terms of a $1.2 billion debt, adding fresh challenges to the Indian borrower's efforts to resolve disputes around the loan.
The company failed to decide on revisions sought by lenders in the loan's terms, including part repayment and higher interest payments, by the latest agreed-upon date of Aug. 3, people familiar with the matter said. Meanwhile, a creditors' lawsuit against Byju's as part of the dispute is coming up for trial in a US court Friday.
A panel of creditors, who together own more than 85% of the term loan, and Byju's had agreed to work toward a “signed and completed” amendment before Thursday, the lenders said last month. Meeting the deadline would have avoided further enforcement actions from the financiers and ended the legal dispute.
READ: Star Founder Broke Down in Tears as Crises Engulfed Byju's
“No deadline has been missed as Aug. 3 was merely a hopeful date likely to be scheduled for a sign-off,” a spokesperson for Byju's said in an emailed statement. The discussions are progressing well and talks are expected to close at the earliest, according to the statement.
A representative for the creditors declined to comment.
Byju's has missed multiple deadlines to rework the debt, the people said, asking not to be named as the information is private. Its dollar-denominated loan due in 2026 is quoting at 50 cents on the dollar, down from 62 cents at the start of the week, according to data compiled by Bloomberg.
The company, once the world's most valuable edtech firm, has faced a series of crises in recent months as its auditors quit, India's anti-money laundering officials searched its offices, and several directors from its board resigned.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
