M&M Ssangyong loan repayment: M&M arm SsangYong misses loan repayments of approximately $ 408 million |

NEW DELHI: Mahindra and Mahindra said on Tuesday that their Korean military SsangYong Motor Company has lost its loan repayment amounting to KRW 60 billion (around 408 million lei).
In a regulatory case, Mahindra and Mahindra (M&M) said South Korea had listed SsangYong Motor Company (SYMC) has outstanding loans amounting to 100 billion Korean won (approximately Rs 680 million).
SYMC has outstanding loans of KRW 60 billion (around 408 lei) from JP Morgan Chase Bank, KRW 10 billion (around 68 million euros) from BNP Paribas and KRW 30 billion (around 204 million) from Bank of America, is shown in the file.
“Of the total outstanding amount mentioned above to these banks, SYMC missed the repayments of … loans totaling approximately KRW 60 billion (approximately RR 408 million) which were due and payable on 14 December 2020,” he added.
M&M stated that “while the company has committed to cover the above-mentioned loans granted by banks, its final liability will be limited to the extent that it is not recovered from SYMC.”
In addition, he added that “upon payment of dues by the company to the banks, the company will be subrogated to all bank rights against SYMC, and the company will replace the banks as creditor and will be entitled to all rights that the banks had against SYMC on these loans. ”
In April this year, M&M said its board had rejected a proposal to inject any new equity into SYMC.
SYMC’s management and union have sought funding of KRW 500 billion ($ 406 million) from the Mumbai car company for the next three years.
Mahindra acquired SYMC at a loss in 2010, but has failed to transform it since then, despite several attempts.
M&M now owns almost 75% of the Korean company and has since invested over $ 110 million.
SsangYong struggled with deteriorating earnings in 2017, when it slipped into the red with a net loss of 66 billion won against a net profit of 58 billion won in 2016.
In 2018, its net loss increased to 62 billion won and then increased to 341 billion won in 2019.
M&M shares traded 0.12 percent higher at Rs 711.95 each on BVB.