Ssangyong Motor Co misses repayment of loans worth to ₹408 crore

Our Bureau Mumbai | Updated on December 15, 2020

Mahindra & Mahindra’s South Korean subsidiary, Ssangyong Motor Co, has missed repayments of loans aggregating an amount of around 60 billion Korean won or ₹408 crore which were due and payable on December 14, 2020, M&M said in a regulatory filing on Tuesday.

It has outstanding loans aggregating 100 billion won or about ₹680 crore.

Out of the total outstanding amount, which are covered under commitments made by the company to the bankers of SYMC, it has outstanding loans amounting to around 60 billion won or ₹408 crore with JP Morgan Chase Bank, Seoul; around 10 billion won or ₹68 crore with BNP Paribas, Seoul Branch; and around 30 billion won or ₹204 crores with Bank of America, Seoul.

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SYMC has missed repayments of the following loans aggregating an amount of nearly 60 billion won (₹408 crore) which were due and payable on December 14, 2020:

JP Morgan: Principal amount of around 20 billion won (₹136 crore) and interest of 0.02 billion won ( ₹0.13 crore)

BNP Paribas: Principal amount of nearly 10 billion won ( ₹68 crore) and interest of 0.01 billion won (₹0.07 crore)

BoA: Principal amount of about 30 billion won (₹204 crore) and interest of 0.03 billion won (₹0.19 crore)

“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,” said M&M.

On the payment of the dues from the company to the banks, M&M 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, entitled to all the rights the banks had against SYMC with respect to these loans, it added.

M&M has been searching for a partner for the ailing SYMC.

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Published on December 15, 2020

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