Jobaaj Stories
The renowned edtech startup Byju's is in the news again. But this time, the startup is on the role to pay off the $40 million loan, which has been derailing it for a long time now.
Today Byju's company is anticipated to make the final $40 million payment on its $1.2 billion highest unrated loan. The due date for the installment and the quarterly interest payment for the ed-tech business is June 5. And if the company is unable to pay off this interest amount, then the loan which is the cause of the company’s financial trouble will bounce. Creating more troubles.
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According to Bloomberg, who cited unnamed sources, the $40 million payment is anticipated to be made on June 5. The knowledge is not available to the general population. According to Bloomberg, the issue is still a moving target, and the Byju's payment schedule can also vary. Though there has not been any comment from the company’s end yet!
The loan is the most unrated debt ever owed by a business. After schools resumed operations following the epidemic, Byju's reputation shifted. After experiencing a surge during the epidemic, the company's earnings sharply increased. The business's earnings drastically decreased as the pandemic-era spike in online tutoring began to fade. Because of this, Byjus has been attempting to negotiate a debt restructuring with creditors.
But the question arises, what will happen to the overburdening debt? For starters, Byjus will experience a sea shift if the coupon amount is paid on time since it will buy the business some time for a "large capital infusion". The substantial money inflow will be used to pay off the debt, according to the company's attorney.
Byjus is up to date on all debt payments, thus any missed payments shall be viewed as a formal violation of the loan agreement.
Byjus has notably missed filing deadlines for financial statements for the year ending March 31. An examination by an Indian body to look into possible breaches of Indian foreign exchange laws was another setback for the company.
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