Edtech player Byju’s is planning to make a quarterly interest payment of around $40 million on a loan, according to a Bloomberg report quoting people familiar with the matter. It said the company expects to pay the amount on Monday to meet the June 5 deadline.
In case Byju’s fails to pay the $40 million interest payment, it will mean the $1.2 billion loan will default, according to the report. The loan is the largest unrated loan by a startup ever.
The company has missed deadlines to file its financial accounts for the year to March 31.
In late-April, the ED conducted searches on Byju’s as part of a foreign exchange violation probe under the provisions of the Foreign Exchange Management Act (FEMA). A total of three premises, two businesses and one residential, of Byju’s CEO Raveendran Byju and his company were raided.
The ED said the action was taken “on the basis of various complaints received from various private persons”. It said several summonses were issued to founder & CEO Raveendaran Byju earlier. However, “he always remained evasive and never appeared during the investigation”.
The company, however, said it was a “routine inquiry under FEMA” and “business as usual”. Byju’s said it will continue to work closely with the authorities to ensure that they have all the information they need.
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