Byju’s lenders hold talks on how to react to missed loan interest: reporttext_fields
New Delhi: Byju’s decision of not to make interest payment on $1.2 billion loan apparently baffled the online education company’s lenders, who reportedly have mulled different options to hit back.
Byju’s decision to refrain from interest payment has taken a new turn with lenders deciding between litigation, negotiation and seizing collateral, according to a report by Bloomberg.
Bloomberg reported citing people who were aware of the matter that the group of lenders discussed options before them on a call late Wednesday.
The move by lenders come after the online company had reached out to them and scheduled a call on Monday to discuss a proposal for a ‘loan amendment’.
A report previously said that Byju’s was trying to restructure the loan in its efforts to overcome the mounting crisis.
Skipping an interest payment, Byju’s on Monday approached a court in New York raising the allegation that a ‘group of investors’ created ‘ fake debt crisis’ to extort from the education-technology company.
Former teacher Byju Raveendran’s eponymous company has run into rough weather following slump in online education after pandemic-era boom.
The son of educators, Raveendran founded the company in 2015 and piloted it to become the most valuable startup in India.
The company failed to meet deadlines to file financial accounts and later India’s financial agency raided its offices over violations of foreign-exchange policies.