Byju’s today faces deadline over a whopping loan alongside crisis in markettext_fields
New Delhi: Online education company Byju’s is facing a deadline on Monday to pay the quarterly interest rate payment of $40 million on a staggering loan of $1.2 billion, Bloomberg reports.
One of the world’s pioneering education facilities has run into rough weather following post pandemic boom in online teaching.
Founded in 2011 by former teacher Byju Raveendran, the company claims to be teaching more than 150 million students around the world.
However, if the edtech firm of Byju’s fails to arrange the payment on Monday, the $1.2 billion loan will default.
The loan, according to Bloomberg, is at the centre of the company’s financial troubles.
Houlihan Lokey Inc, which is advising creditors on the loan, however, refused to comment on the loan, according to the report.
In the face of the huge debt of $1.2 billion, which is reportedly the largest for a startup, Byju’s is trying a deal with creditors to restructure the loan.
A previous report by Bloomberg said that creditors ‘scrapped the long-running negations’, while pressing for quick payment of the loan.
Alongside, the lender consortium made an agreement to act together in negotiations.
After failing to meet deadlines to file financial accounts, the company earlier faced raids by India’s financial agencies, according to the report.