ED-backed BYJU’s to pay $40 million loan on loan today

BYJU s, an Indian edtech major, is due to pay a $40 million loan on its $1.2 billion loan on Monday. The firm expects to meet the contract's deadline, sources familiar with the matter said. The situation is fluid and the plans could change, the report said.

The sources also revealed that failing to pay the loan would result in a loan default.

This is the largest unrated loan a start-up has ever received. The firm's founder, Byju Raveendran, has been trying to negotiate a long-term deal with creditors to restructure the term loan. The edtech major is experiencing a crisis due to the post-pandemic decline in online courses as the industry has adopted a hybrid approach.

But the lenders, demanding the repayment scrapped the long-running negotiations, Bloomberg reported last week. The lender consortium has signed a Cooperation Agreement that binds them to act together in negotiations, sources said.

The loan, which fell in September to a record low of 64.5 cents to a dollar, is now known at around 78 cents, according to data compiled by Bloomberg.

BYJU s has also been hitting the headlines for not filing its financials for FY22. recently, the ED said the company was being vetted in relation to the foreign direct investment of Rs 28,000 crore in 2011 and 2023, which the edtech major received between 2011 and 2023. The agency added that the company remitted Rs 9,754 million to various foreign jurisdictions during the same period in the name of overseas direct investment.

BYJU s did not respond to the suggestions for comments on the instalment payment. Representatives for Houlihan Lokey Inc., which was hired by creditors to advise them on the loan, declined to comment.