The edtech firm hopes to make the payment on Monday to fulfill the deadline of June 5, people said, who requested anonymity because this information is not public.
Bayjuice, one of the most expensive startups, is planning to pay off a quarterly interest on its outstanding debt, which amounts to approximately $40 million, according to sources.
“The edtech firm hopes to make the payment on Monday to fulfill the deadline of June 5,” people said, who requested anonymity because this information is not public. The situation is still fluid, and plans can change. In the event of non-payment on that date, the $1.2 billion debt will become delinquent.
Bayjuice has not provided any comments regarding the coupon payment. The representatives of Haulihan Loki Inc., which advises on debt restructuring, declined to comment.
The $1.2 billion debt is the largest unverified debt ever issued by a startup. Previously led by former teacher Bayju Ravindran, the struggling company attempted to negotiate with its creditors after a decline in its financial position due to the pandemic.
However, the creditors rejected a quickly payback demand, according to Bloomberg’s report. The lenders’ consortium has signed a cooperation agreement, which binds them to work together with the organization.
The firm missed crucial deadlines for filing its financial accounts until March 31, leading to scrutiny by agencies responsible for enforcing national foreign exchange policies in its offices.