Byju’s Seeks More Time From Creditors To Repay $1.2 Billion Debt: Report

During the fiscal year ended on March 31, 2021, Byju's clocked a loss of Rs 4,588 crore and revenue of Rs 2,428 crore

Last month, Bloomberg reported that some of the creditors are seeking quicker repayment of the loan using cash reserves of about $850 million from Byju’s’ US unit.   ( Image Source :Getty )

Edtech start-up Byju’s is seeking more time from lenders to repay a $1.2 billion debt. According to a report by Bloomberg, Byju’s has sought more time from creditors to renegotiate the terms of an agreement governing the loan. 

The report cited people with knowledge of the matter saying that creditors have until Tuesday to sign a forbearance agreement, which will give the company time till February 10 to negotiate broader terms on the term loan. 

Byju’s has missed the deadline to disclose financial results for the year ended March 31, people said. 

During the fiscal year ended on March 31, 2021, the company logged a loss of Rs 4,588 crore and revenue of Rs 2,428 crore. Now the company is looking to appease creditors and investors. The report says that accelerated repayment will be a setback for the company struggling with steep losses. 

Last month Bloomberg reported that some of the creditors are seeking quicker repayment of the loan using cash reserves of about $850 million from Byju’s’ US unit.  

Now the report said that Byju’s has offered to raise fresh equity capital and provide creditors with a quality of earnings report and cash verification statements by external auditors. Adding that reworking the agreement requires approval from a simple majority of lenders. 

The edtech company has reportedly appointed an adviser to discuss tweaks in covenants of the term loan B with creditors. 

There were also reports of Byju Raveendran, the co-founder, and CEO of Byju's, is in talks to raise his stake to 40 per cent in Think and Learn Pvt Ltd., the parent company of Byju's. 

The company is also finalising plans for a $1 billion initial public offering of its tutoring business Aakash Educational Services, and may consider IPOs of other units, Bloomberg reported in November.