Loss-Stricken Byju’s Seeks Easier Terms on $1.2 Billion Loan
According to persons familiar with the situation, Indian online-education company Byju’s is looking to renegotiate its $1.2 billion loan as it battles with high losses and cost-cutting targets.
The nation’s most valuable startup, valued at $22 billion, has recruited an adviser to negotiate modifications in term loan B covenants with creditors, according to persons who asked not to be identified because the information is not public. Discussions on more forgiving conditions, such as a lower coupon and more time to repay, are ongoing, and no final decision has been made, one of the persons said, without offering any specifics.
Byju’s is one of the many businesses that prospered on India’s rising mobile connections and outside funding until their meteoric rise was cut short by excessive financial burn. Creditors are anxious about the company’s capacity to repay, and several have sold down their loans, according to sources.
Photo courtesy of cherian_in.