Author: Tronserve admin
Saturday 31st July 2021 07:29 AM
Ssangyong Motor Seeks Extension On $75 Mn Loan From KDB
SsangYong Motor Co., the South Korean unit of Indian carmaker Mahindra & Mahindra Ltd., has asked state-run Korea Development Bank (KDB) for an extension on its 90-billion-won ($75.2 million) loan, a request that is likely to be granted. The cash-strapped sport utility vehicle maker is seeking an extension on the debt payment of 70 billion won due July 6 and 20 billion won due July 19, according to industry sources on Sunday.
KDB had hinged its decision on whether SsangYong secures a loan extension from its foreign creditors. The Korean state lender has said it cannot extend the loan moratorium to a company with overdue debt and called on Mahindra to push harder for a deferment on its foreign loans, citing the Indian parent’s verbal support when first taking out the debt.
SsangYong has said it paid back a portion of its debt maturing in June to foreign lenders and extended the loan terms for the rest.
As of late March, SsangYong had 389.9 billion won of debt that is due within a year. In addition to the 90-billion-won loan from KDB, it owes about 109.2 billion won to Citibank Korea, 90 billion won to JPMorgan Chase, 47 billion won to BNP Paribas and 30 billion won to Bank of America.
Last month, Mahindra said it plans to give up control of its loss-making Korean unit as part of broad restructuring efforts to ride out the pandemic. The Indian parent holds a 75 percent stake in SsangYong, valued at about 375 billion won based on Monday’s trading price of 3,340 won a share. Shares were trading 0.45 percent higher from the previous session in early Monday trading.
SsangYong posted an operating loss of 281.9 billion won last year, with a debt ratio of 755 percent as of the quarter ended March 2020.