Mahindra said that he is committed to cover the aforementioned loans from banks, his final liability will be limited as long as it is not collected from SsangYong.
Ssangyong has a total of approximately 100 billion won (Rs. 680 crore) outstanding loans to the three banks
Local utility vehicle maker Mahindra and Mahindra announced that its South Korean unit, Ssangyong Motor Company, was in default on a loan of about 60 billion Korean won (KRW), or about 60 billion Korean won (KRW). ). ₹ 408 crore, at three different financial institutions. In his Bombay Stock Exchange (BSE) filing, Mahindra states that of the total amount, which was due on December 14, 2020, SsangYong was supposed to pay JP Morgan around 20 billion won (₹ 136 crore), 10 billion won (₹ 68 crore) to BNP Paribas and 30 billion won (₹ 204 crore) to Bank of America. In addition, the interests of the three banks will total approximately 60 million won (39 crore won).
SsangYong’s total loans outstanding amount to 100 billion won, or about 680 crore. However, while Mahindra stated that he is committed to cover the above-mentioned loans granted by the Banks, his final liability will be limited to the extent that it is not recovered from SsangYong. We have reached out to Mahindra for an official statement on this matter, however, this company has stated that it will not share any other details apart from what is mentioned in the stock file.
After the announcement, shares of Mahindra and Mahindra fell 1.5% on Tuesday to their lowest level since November 23, 2020. On the other hand, shares of Ssangyong, which is listed in South Korea among others, fell to 7.72%. .
Earlier this year, Mahindra announced plans to sell all or at least 75 percent of its stake in the South Korean sports utility vehicle (SUV) maker, and is currently seeking a buyer. At the time, the company said the move was part of a larger Mahindra restructuring effort that saw it overhaul all of its loss-making activities to cut costs and prioritize capital spending. At present, Mahindra owns 74.65% of the capital of SsangYong. Rumor has it that Chinese Geely and BYD may be interested in SsangYong. On the other hand, numerous recent reports suggest that the US import car distributor HAAH Automotive Holdings is interested in investing $ 258 million in the South Korean SUV maker for a substantial stake in the company.