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Sunday, April 21, 2024

As the company fails to repay debts, Byju’s risks bankruptcy proceedings: Report

<p>Byju’s, an edtech company, is in bankruptcy proceedings due to difficulties with payments.</p>
<p>It has been revealed that Think and Learn Private Limited, the holding company of the consortium of overseas lenders, is facing corporate insolvency procedures.</p>
<p><img decoding=”async” class=”alignnone wp-image-375808″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/01/theindiaprint.com-as-the-company-fails-to-repay-debts-byjus-risks-bankruptcy-proceedings-report-byju.jpg” alt=”theindiaprint.com as the company fails to repay debts byjus risks bankruptcy proceedings report byju” width=”1391″ height=”782″ title=”As the company fails to repay debts, Byju's risks bankruptcy proceedings: Report 9″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/01/theindiaprint.com-as-the-company-fails-to-repay-debts-byjus-risks-bankruptcy-proceedings-report-byju.jpg 690w, https://www.theindiaprint.com/wp-content/uploads/2024/01/theindiaprint.com-as-the-company-fails-to-repay-debts-byjus-risks-bankruptcy-proceedings-report-byju-390×220.jpg 390w, https://www.theindiaprint.com/wp-content/uploads/2024/01/theindiaprint.com-as-the-company-fails-to-repay-debts-byjus-risks-bankruptcy-proceedings-report-byju-150×84.jpg 150w” sizes=”(max-width: 1391px) 100vw, 1391px” /></p>
<p>After 16 months of trying to restructure the company’s debts, the lenders—led by GLAS Trust Co., the agent for Byju’s term loans—took this action, according to news agency Reuters.</p>
<p>In response, Byju’s said that any lawsuits filed by lenders before the National Company Law Tribunal (NCLT) were untimely and unfounded, emphasizing that the results of these cases do not fairly represent the company’s financial situation.</p>
<p>Byju’s said, “The commencement of legal proceedings does not reflect the true financial standing of the company.”</p>
<p>Byju’s, supported by investors such as General Atlantic, Prosus, and Silver Lake, has faced obstacles in the last several months and is now in the process of settling the repayment of a $1.2 billion loan.</p>
<p>Byju’s problems worsened when the Enforcement Directorate (ED) sent the business a warning in November.</p>
<p>According to reports, the business is looking to raise over $100 million from current investors at a 90% discount to its $22 billion value in the next financing round in 2022 in order to solve financial issues.</p>

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