US Lenders Challenge Byju’s Claim on Debt, Insist Edtech Must Repay Full $1.2 Billion Term Loan B

US lenders have pushed back against claims made by Indian edtech giant Byju’s regarding its debt obligations, asserting that the company is obligated to repay the full $1.2 billion Term Loan B (TLB). Byju’s had previously stated that it had only agreed to repay a portion of the loan amount, sparking a dispute with its lenders.

The disagreement stems from Byju’s recent acquisition of US-based online learning platform Epic for $500 million, which was financed through a combination of cash and debt. Byju’s had argued that it was only required to repay $600 million of the TLB, with the remaining $600 million being considered a “non-recourse” loan.

However, US lenders have now countered Byju’s claims, stating that the company is indeed obligated to repay the full $1.2 billion TLB as per the terms of the agreement. The lenders argue that Byju’s interpretation of the loan terms is incorrect and that the company must adhere to the agreed-upon repayment schedule.

The dispute between Byju’s and its lenders has raised concerns about the company’s financial health and its ability to manage its debt obligations. Byju’s, which has been at the forefront of the edtech boom in India, has been expanding rapidly both domestically and internationally, raising questions about the sustainability of its growth trajectory.

Investors and analysts will be closely monitoring the outcome of the dispute between Byju’s and its lenders, as it could have significant implications for the company’s future financial stability. In the meantime, Byju’s will need to navigate this challenging situation and work towards resolving the disagreement in a manner that is satisfactory to all parties involved.