India's most valuable startup, valued at US$22bil (RM96.5bil), has appointed an adviser to discuss tweaks in covenants of the term loan B with creditors.
NEW DELHI: Indian online-education provider Byju’s is seeking to restructure its US$1.2bil (RM5.3bil) loan as it struggles with steep losses and cost reduction targets, according to people familiar with the matter.
The nation’s most valuable startup, valued at US$22bil (RM96.5bil), has appointed an adviser to discuss tweaks in covenants of the term loan B with creditors, the people said, asking not to be named.
Discussions on more lenient terms, including lower coupon and more time to repay, are continuing and no final decision has been reached, one of the people said, without providing further details.
Byju’s is among the crop of startups that thrived on India’s growing mobile connections and overseas investments until its blistering growth trajectory was cut short by excessive cash burn.
Creditors are getting concerned about the company’s ability to repay and many have sold down the loans, they said.
The three-month Libor has surged more than 21 times this year, making the loan costlier for the Bengaluru-headquartered firm.
The margin on the loan was raised by an additional 50 basis points this year after its parent company, Think and Learn Pvt, failed to get rated, the people said. — Bloomberg
