Struggling ed-tech giant Byju’s misses yet another debt revision deadline, intensifying challenges amid disputes over a $1.2 billion loan. Lenders sought amended terms, including higher interest and partial repayment, but no decision was reached by the August 3rd target. Legal showdown with creditors looms as the firm grapples with crises and valuation decline.
Beleaguered ed-tech firm Byju’s continues to face setbacks as it once again missed a target date set by its creditors to amend the terms of a $1.2 billion debt. This adds fresh challenges to the company’s efforts to resolve disputes surrounding the loan.
By the most recent agreed-upon date of August 3rd, the company was expected to make decisions regarding the revisions sought by lenders in the loan’s terms. These revisions included partial repayment and higher interest payments. However, sources familiar with the matter reveal that Byju’s failed to reach a decision. Concurrently, a lawsuit initiated by creditors against Byju’s as part of the ongoing dispute is scheduled for trial in a US court on Friday.
Last month, a panel of creditors, collectively holding over 85% of the term loan, and Byju’s had committed to working together to achieve a “signed and completed” amendment before Thursday. Successfully meeting this deadline would have averted additional enforcement actions by the financiers and concluded the legal dispute.
Responding to the situation, a spokesperson for Byju’s clarified, “The August 3rd date was indicative and not a binding deadline. Our discussions are proceeding positively, and we anticipate reaching an agreement at the earliest.”
Byju’s has faced a series of missed deadlines in its attempts to renegotiate the debt, according to sources. The value of its dollar-denominated loan, due in 2026, has decreased to 50 cents on the dollar from 62 cents at the beginning of the week, based on data compiled by media outlets.
Once regarded as the world’s most valuable edtech firm, Byju’s has been confronted with a cascade of challenges in recent months. These include the departure of auditors, searches of its offices by India’s anti-money laundering officials, and the resignation of several board directors.
