Byjus are in trouble, US lenders bring up them to Bankrupt Court
Byju is the world’s most popular online education hub, and a group of lenders have brought them to bankruptcy court in India. They want insolvency proceedings against Byjus. Byjus took out lots of loans to keep the operation running, and they needed funds. The amount of loans taken was about 1.2 billion by the US subsidiary.
The US lenders are filing an insolvency application against Think and Learn Pvt. Ltd., which is Byju’s parent company. They claim that the company is not able to pay and has defaulted on loan payments. The lender group said the Byju’s management has no intention or ability to honor its obligations under the terms of the loan. The US group lender claims to collect more than 85% of the loan amount of $1.2 billion.
Byju’s media said that the move was premature and all the allegations were baseless; lenders only wanted to claim an unwanted amount.
The loan was taken by BYJUs, and they agreed to pay the loan amount based on quarterly installments of 30 million dollars starting in June 2022, but the loan faced a longstanding issue, and they are not able to pay the amount that they borrowed from us.
In July 2023, the company halted payments, and they are currently engaged in a legal wrangle with the creditors in the U.S. In the same month, they also stated that the lender had reached an agreement with us to amend the terms of the loans, but there has been no update on the matter since.
Byjus is in trouble, US lenders are very upset
After lots of delay and missing deadlines, Byjus parent firm filed its audited FY22 of the week with the registrar of the company, and they are scouting for funds. The valuation of the company was as low as 500 million dollars, and in 2021, its value was 22 billion dollars.
Byjus rapidly lost its valuation and came into a big loss of Rs 8245 crore in the financial year 2022.
What is Black Rock?
Black Rock is none other than the world’s largest asset manager and an investor in Byjus. After reducing the valuation of the tech firm from about 22 billion dollars to 1 billion dollars, the lots of board and incessant layoffs and resignations put the company into serious concern, and Byjus now gets into very big trouble.
What is Byjus
Byjus is none other than a famous education and tech company that provides online education. The founder of Byjus is Byju Raveendran, founded in 2011, and the main headquarters of this company is in Bengaluru, India. They offer online learning platforms that include interactive video lessons and adaptive learning modules.
It also provides you with a learning app that helps you get all your services on one platform. The student can access online educational content, quizzes, and interactive features.
If we talk about funding, then Byjus attracted significant investment from various sources, but now it was at the stage of insolvency, and lots of lenders filed a case against the company.
Conclusion:-
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