Byju’s lenders scrap talks to restructure $1.2 billion loan

Creditors to Byju’s, India’s most valuable startup, have pulled out of negotiations with the company to recast a $1.2 billion loan, posing a new setback to the beleaguered tech firm, according to people familiar with the matter.

The talks were called off after the creditors moved court, accusing the firm of hiding $500 million of funds raised, the people said, asking not to be named as the information is not public. Lenders can now sell the term loan B securities of the firm as the restraint that came as part of the negotiations is lifted, they said.

The move is a fresh challenge for one of India’s hottest tech companies, which has been working to appease creditors by offering prepayments and higher coupons to restructure the loan.