Byju's and Lenders Dispute: Borrowers put pressure on Byju's, filed a case, still haven't paid interest

Byju Ravindran-led giant company Byju has decided not to make further payments to the borrowers. Because the condition of the company is still not good and the decision of payment will be taken keeping all the aspects in mind.

Education giant Byju's has decided to default on further payments on a $1.2 billion loan following a dispute with lenders, which could jeopardize the future of one of India's top startups. According to people with knowledge of the matter, Byju's has not paid the interest of $40 billion due on Monday. The company said in a statement on June 6 that it has filed a complaint with the New York Supreme Court regarding the loan.

The company says that with legal proceedings now underway in both Delaware and New York, it is clear that the entire TLB is disputed. TLB has decided not to make any further payment to the lenders including any interest till the dispute is decided by the court. Byju's had been trying to strike a debt restructuring deal with lenders after the boom in online tutoring during the Corona pandemic and its financial position was in tatters, but creditors seeking repayment have ended the long-running discussions. Canceled the.

Looking for a default payment method

No payments had been made as of 6 p.m. in New York on June 5, according to the people, who asked not to be identified because the matter is private. That's why people said that some lenders are looking for ways to default on possible payments. The loan fell to a low of 64.375 cents on the dollar on Monday, down from 78 cents on June 2, according to Bloomberg data.

The company, headed by former teacher Byju Raveendran, had previously missed deadlines for filing financial accounts, and its offices were searched by India's agency that investigates violations of the country's foreign exchange policy. Raveendran founded his eponymous startup in 2015. The parent company of which is formally known as Think & Learn Pvt. has risen as the country's most valuable startup in the last decade through a surge in demand for online education.

Byju's decision indicates difficulties

Byju's attracted investment from Silver Lake Management and Naspers Ltd as well as from Tiger Global Management and Mark Zuckerberg's Chan Zuckerberg Initiative. Byju's valuation had reached $22 billion and last year considered merging with a special-purpose acquisition company, or SPAC, to go public. Byju's disputed the idea that its decision not to make interest payments indicated financial difficulties.