Mahindra unit SsangYong Motor misses loan repayments worth around 408 crore

Mahindra & Mahindra on Tuesday said its loss-making Korean arm SsangYong Motor Company has missed repayments of loans aggregating to 60 billion KRW (around 408 crore).

FILE PHOTO: The logo of Ssangyong Motor is seen here (REUTERS)
FILE PHOTO: The logo of Ssangyong Motor is seen here

In a regulatory filing, Mahindra & Mahindra (M&M) said the South-Korea listed SsangYong Motor Company (SYMC) has outstanding loans aggregating to 100 billion Korean Won (approximately 680 crores).

SYMC has outstanding loans of 60 billion KRW (around 408 crore) from JP Morgan Chase Bank, 10 billion KRW (around 68 crore) from BNP Paribas and 30 billion KRW (around 204 crore) from Bank of America, the filing said.

"Out of the above mentioned total outstanding amount with these banks, SYMC has missed repayments aggregating an amount of approx. 60 billion KRW (approx 408 crore) which were due and payable on December 14, 2020," it added.

Also check these Vehicles

Find more Cars
Mahindra Ekuv100 (HT Auto photo)
₹ 8.25 - 10 Lakhs* *Expected Price
View Details
Mahindra S204 (HT Auto photo)
₹ 12 Lakhs *Expected Price
View Details
Mahindra Xuv300 (HT Auto photo)
₹ 7.96 - 13.46 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Mahindra Xuv700 (HT Auto photo)
₹ 14.03 - 26.57 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Mahindra Be.05 (HT Auto photo)
₹ 12 - 16 Lakhs* *Expected Price
View Details
Mahindra Marazzo (HT Auto photo)
₹ 12.30 - 14.57 Lakhs* *Ex-showroom price
Add to compare
Check latest offers

Also Read : Mahindra expects drop in production, sales volume in last quarter

M&M said "whilst the company has made a commitment to cover the above-mentioned loans given by the Banks, its final liability will be limited to the extent not recovered from SYMC."

It further added that "on payment of the dues by the company to the banks, the company will be subrogated to all the rights of the banks against SYMC and the company will step into the shoes of the banks as creditor, and will be entitled to all rights which the banks had against SYMC, with respect to these loans."

In April this year, M&M said its board had rejected a proposal to inject any fresh equity into SYMC.

Also Read : Thar SUV helps Mahindra and Mahindra November sales to go up by 4 per cent

The management and labour union of SYMC had sought a funding of 500 billion KRW (USD 406 million) from the Mumbai-based auto major over the next three years.

Mahindra had acquired the loss-making SYMC in 2010, but failed to turn it around since then despite several attempts.

M&M holds nearly 75 per cent in the Korean company now and has since invested over USD 110 million.

SsangYong has been struggling with deteriorating earnings since 2017, when it slipped into the red with a net loss of 66 billion wons as against a net profit of 58 billion wons in 2016.

In 2018, its net loss rose to 62 billion wons and then ballooned to 341 billion wons in 2019.

Shares of M&M were trading 0.12 per cent higher at 711.95 a piece on BSE.

First Published Date: 15 Dec 2020, 14:19 PM IST
Shopping Bag Shop Now
74% OFF
IDELLA Car Duster, Extendable Long Handle Microfiber Car Duster Exterior Scratch Free Car Cleaning Tool, Car Dust Brush for Truck, Pickup, SUV, RV, Motorcycle, Vehicles Cleaning,(Multicolor)
Rs. 238 Rs. 899
55% OFF
Antson Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable, Portable,Rechargeable Vacuum (2 in 1)
Rs. 899 Rs. 1,999
74% OFF
Microfiber Car Cleaning Soft Brush Ideal as Mop Duster, Washing Brush with Long Handle, Dust Cleaner Car Wash Brush with Handle, Soft Brush Scratch Free, Cleaning Dashboard Curved Design - Grey
Rs. 389 Rs. 1,499
1% OFF
GOODAIR Clear Car Windshield Enhancer | Classic |12 Tablets
Rs. 295 Rs. 299

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
Powered by: Acko Logo
Please be noted that any information provided herein above will be received by Acko General Insurance Limited (“Acko”). By mentioning the above information, you agree to provide these details and information to Acko.
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.