Mahindra has acknowledged that it has made a dedication to cowl the above-mentioned loans given by the Banks, its last legal responsibility will probably be restricted to the extent not recovered from SsangYong.
Ssangyong has complete excellent loans of about 100 billion received (Rs. 680 crore) to the three banks
Home-grown utility car producer, Mahindra and Mahindra, has introduced that its South Korean unit, Ssangyong Motor Company, has defaulted on mortgage repayments of about 60 billion Korean Won (KRW) or approx. ₹ 408 crore, to a few totally different monetary establishments. In its Bombay Stock Exchange (BSE) submitting, Mahindra states that out of the full quantity, which was due on December 14, 2020, SsangYong was alleged to pay about 20 billion Won ( ₹ 136 crores) to JP Morgan, 10 billion Won ( ₹ 68 crore) to BNP Paribas, and 30 billion Won ( ₹ 204 crore) to Bank of America. Additionally, pursuits from the three banks will add as much as about 60 million received ( ₹ 39 crore).
Also Read: South Korea’s SsangYong Motor Looking For Possible Buyer As Mahindra May Exit
SsangYong’s complete excellent loans combination as much as 100 billion Won, which is roughly ₹ 680 crore. However, whereas Mahindra has acknowledged that it has made a dedication to cowl the above-mentioned loans given by the Banks, its last legal responsibility will probably be restricted to the extent not recovered from SsangYong. We did attain out to Mahindra for an official assertion on the matter, nonetheless, that firm has acknowledged that it’s going to not share any additional particulars other than what’s talked about within the inventory alternate submitting.
Also Read: Mahindra Open To Exiting SsangYong, Looks At Bringing In A New Investor
Post the announcement, Mahindra and Mahindra’s shares fell as a lot as 1.5 per cent on Tuesday to their lowest since November 23, 2020. On the opposite hand, shares of Ssangyong, which is listed in South Korea inter-alia fell as much as 7.72 per cent.
Also Read: Mahindra To Sell Its Stake In SsangYong To US-Based HAAH Automotive
Earlier this 12 months, Mahindra introduced that it intends to promote all or at the very least 75 per cent of its stake within the South Korean Sport Utility Vehicle (SUV) maker, and is presently in search of a purchaser. Back then, the corporate had acknowledged that the transfer is a part of a wider restructuring effort by Mahindra beneath which it’s reviewing all of its loss-making companies to chop prices and prioritise capital expenditure. Right now, Mahindra owns 74.65 per cent stake in SsangYong. Rumour has it that China’s Geely and BYD is perhaps curious about SsangYong. On the opposite hand, many current experiences recommend that US-based import automotive distributor HAAH Automotive Holdings is claimed to be curious about investing $258 million in South Korean SUV maker for a considerable stake within the firm.
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