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SsangYong Motor utilized for the court docket receivership process as an enormous disruption within the operation is anticipated after the corporate couldn’t attain an settlement to increase its mortgage reimbursement deadlines with international banks.
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SsangYong Motor defaulted on a 60 billion Won (Rs. 408 crore) mortgage on December 14, 2020
South Korea’s SsangYong Motor Co Ltd filed for court docket receivership on Monday after it defaulted on mortgage reimbursement of about 60 billion received ($54.44 million), the South Korean automaker stated in an announcement.
“SsangYong Motor applied for the court receivership procedure as a massive disruption in the operation is expected after the company could not reach an agreement to extend its loan repayment deadlines with foreign banks,” it stated in an announcement.
Indian automaker Mahindra & Mahindra, which holds a 74.65% stake in SsangYong, stated final week the whole cost was due on Dec. 14.
About 30 billion received was owed to Bank of America Corp, 20 billion received to JPMorgan Chase & Co and 10 billion received to BNP Paribas.
SsangYong is burdened with excessive debt and its car gross sales between January-November interval fell to 96,825, down greater than 20% from a 12 months earlier, the automaker’s submitting confirmed.
The automaker stated it had utilized for an autonomous restructuring assist program, which provides SsangYong as much as three months to barter with stakeholders together with collectors to resolve points, delaying the court docket’s determination.
Mahindra since June has been on the lookout for a purchaser for all or most of its 75% stake in SsangYong, which it purchased from near-insolvency in 2010 however has struggled to turnaround.
“Regardless of SsangYong’s filing for court receivership, negotiations of SsangYong sale deal is still ongoing,” South Korea’s commerce ministry stated in an announcement.
In June, an government at Mahindra stated that the Indian firm was keen to let go of its possession stake in SsangYong.
Mahindra & Mahindra shares fell 3.3% of their sharpest fall in eight weeks, whereas SsangYong closed down 19.2% versus a 0.2% rise on the broader KOSPI market.
(This story has not been edited by NDTV workers and is auto-generated from a syndicated feed.)
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