According to a Moneycontrol report, the company has proposed to pay $300 million of the $1.2 billion loan in the next three months, contingent on lenders accepting its amendment proposal.
The report further added that the loan providers are evaluating the proposed amendment and have requested additional information regarding the repayment.
The $1.2 billion term loan B
In November 2021, the educational company Byju's raised $1.2 billion in a loan from a group of international investors. This type of loan, known as a term loan facility (TLB), is generally used by companies to repay existing debts or to expand their services globally, possibly through acquisitions.
In June, Byju's took its lenders to court in New York to dispute the fast-tracking of the term loan facility (TLB). The company also didn't pay the $40 million interest that became due after this fast-tracking.
Despite several discussions and a promise from the lenders to modify the loan terms by August 3, they couldn't reach an agreement. Byju's, a leading global edtech company valued at around $22 billion, has been trying to secure more funding since the beginning of the year, but hasn't succeeded yet due to various challenges at home and abroad.
The company plans to sell Epic, Great Learning
According to a Reuters report, Byju's is planning to sell Great Learning and Epic from its stable to repay the $1.2 billion term loan to its lenders. This comes as the company plans to raise somewhere between $800 million-$1 billion from the sale of these two companies, which it acquired in July 2021.