M&M Ssangyong Loan Repayment: M&M arm SsangYong misses loan repayments worth around 408 crore |

NEW DELHI: Mahindra & Mahindra on Tuesday said its losing arm SsangYong Motor Company had missed repayments of loans amounting to KRW 60 billion (about Rs 408 crore).
In a regulatory filing, Mahindra & Mahindra (M&M) said South Korea listed SsangYong Automobile Company (SYMC) has outstanding loans amounting to 100 billion Korean gains (about 680 crore).
SYMC has outstanding loans of KRW 60 billion (about 408 crore) from JP Morgan Chase Bank, 10 billion KRW (about 68 crore) from BNP Paribas and 30 billion KRW (about 204 crore) from Bank of America, the document said. .
“Out of the above-mentioned total outstanding amount with these banks, SYMC has missed repayments of … loans totaling around 60 billion KRW (about 408 crore), which were due on December 14, 2020,” it added.
M&M said “while the company is committed to cover the above-mentioned loans granted by the Banks, its final liability will be limited to the extent not recovered by SYMC.”
It further added that “after payment of the fees by the company to the banks, the company will be subrogated to all the rights of the banks against SYMC and the company will sue the banks as creditor, and will be entitled to all the rights the banks had against SYMC , in connection with these loans. ”
In April this year, M&M said its board had rejected a proposal to inject any fresh equity into SYMC.
SYMC’s management and union have sought funding of KRW 500 billion ($ 406 million) from the automobile capital in Mumbai over the next three years.
Mahindra acquired the losing SYMC in 2010, but has failed to turn it around since then despite several attempts.
M&M owns nearly 75% in the Korean company now and has since invested more than USD 110 million.
SsangYong struggles with worsening revenue since 2017, when it fell 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 rose to 62 billion won and then grew to 341 billion won in 2019.
Shares of M&M traded 0.12 per cent higher at Rs 711.95 per BSE.