The club were due to pay the huge amount in loan and interests to the King Power International, a company owned by the Srivaddhanaprabha family.
Aiyawatt is the son of former Leicester owner Vichai Srivaddhanaprabha, who died in a helicopter crash outside the King Power Stadium in October 2018.
In a statement on Leicester's official website, the chairman said: "Maintaining long-term stability is vital for sustainable growth and a fundamental principle that has always guided our investments in the club's future.
"We want to make sure we continue on that path from the strongest, most secure financial footing.
"I believe with all my heart in Leicester City and what the Club can achieve for our fans, our people and our communities – in Leicester, Thailand and around the world.
"The faith they continue to place in us to run their club responsibly with ambition and integrity guides our decision making and remains vital to us building on one of the most successful eras in the club's history."
The Srivaddhanaprabha family from Thailand took over Leicester City in 2010 and have since overseen the club's rise from the second tier to become Premier League champions in 2016 and FA Cup winners in 2021.
Leicester have endured a difficult season so far, sitting 14th on the table, three points above the relegation zone.