SsangYong Motor Company (SYMC), the South Korean subsidiary of Mahindra and Mahindra (M&M), has missed a repayment of Rs 480 crore (60 billion Korean Won) to JP Morgan Chase Bank, South Korea which was due and payable on 14 December 2020.
The South Korea-listed SUV maker has outstanding loans aggregating 100 billion Korean Won (approximately Rs 680 crore). It includes (approximately Rs 68 crore) 10 billion KRW from BNP Paribas and (Rs 204 crore) 30 billion KRW from Bank of America.Whilst the company has made a commitment to cover the above-mentioned given by the banks, its final liability will be limited to the extent not recovered from SYMC, it stated.
It added that on payment of the dues by the company to the banks, the company will be subrogated to all the rights of the banks against SYMC and it will step into the shoes of the banks as creditor, and will be entitled to all rights which the Banks had against SYMC, with respect to these loan. M&M made the announcement before market hours today, 15 December 2020.
Shares of M&M were up 0.80% at Rs 716.80.
M&M reported 59.7% decline in net profit to Rs 148.36 crore in Q2 FY21 from Rs 368.43 crore in Q2 FY20. Net sales fell 1.5% year-on-year (Y-o-Y) to Rs 23,566.75 crore during the quarter.
M&M's business is diversified across farm equipment, auto and automotive components, real estate, hospitality, information technology, defence and aerospace and financial services.
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