Byju’s Faces Bankruptcy Proceedings as Lenders Seek Repayment Amid Financial Struggles

Byju's Faces Bankruptcy Proceedings as Lenders Seek Repayment Amid Financial Struggles

Byju's Faces Bankruptcy Proceedings as Lenders Seek Repayment Amid Financial Struggles

Share This News

A consortium of lenders has initiated bankruptcy proceedings against Think and Learn, the holding company of Byju’s, citing challenges in loan repayment by the Indian ed-tech giant. This move follows 16 months of attempts to restructure loans, according to GLAS Trust Co, the agent for Byju’s term loans.

Byju’s responded, asserting that any legal proceedings are premature and baseless, emphasizing that the initiation of legal action does not accurately represent the company’s financial standing.

Backed by investors like General Atlantic, Prosus, and Silver Lake, Byju’s has faced a series of setbacks and is in the midst of negotiating the repayment of a $1.2 billion loan. Reports suggest that the company is seeking over $100 million from existing stakeholders at a substantial 90% discount to its $22 billion valuation in the last funding round in 2022.

In addition to its financial challenges, Byju’s received a notice from the Enforcement Directorate in November, urging the payment of a fine over alleged violations of India’s foreign exchange laws. 

The ED claimed Byju’s breached Foreign Exchange Management Act (FEMA) norms by delaying the filing of documents related to foreign investment and failing to allot shares accordingly.

Angel home decor
ad-23590