Cash-strapped Korean automaker SsangYong Motor may default on KDB loans now | Economic Times

Mumbai: After defaulting on Rs 408-cr worth loans by a consortium of bankers, including JP Morgan Chase, BNP Paribas & Bank of America this week, cash-strapped Korean automaker SsangYong Motor is likely to default on the state-run Korea Development Bank (KDB) loans worth KRW 90 billion which is due on December 21, 2020.KDB may consider extending the maturity for these loans, but only on condition that SsangYong Motor, has cleared overdue loans to the foreign banks, people in the know said. The KDB has been taking a strict stance against SsangYong, saying that the situation called into question the company’s ability to continue its business as a going concern.Sources in the know say SsangYong’s collapse will probably lead to a series of job losses for not only the approximately 5,000 people directly employed by SsangYong, but also for SsangYong’s sale representatives and vendors. In this scenario KDB will be forced to agree to an extension for the loans once more, to prevent SsangYong’s collapse.Thats why KDB will extend support to SYMC if Mahindra resolves the current liquidity issue. KDB wants the major shareholder Mahindra to play a responsible role and come up with a sustainable solution to continue the company as a going concern.