M&M arm SsangYong Motor Co misses loan repayments worth around Rs 408 crore | Economic Times

NEW DELHI: SsangYong Motor Company (SYMC) - the South Korean subsidiary of Mahindra & Mahindra (M&M) - has missed repayment of loans amounting to Rs 408 crore (Korean Won 60 billion) to JP Morgan Chase, BNP Paribas and Bank of America (BoA) which was due and payable on Dec 14, 2020. Out of the total outstanding amount with these banks, SYMC has missed repayments of principal amount of Rs 136 crore (20 billion KRW) and interest of Rs 0.13 crore (0.02 billion KRW) to JP Morgan Chase, principal amount of Rs 68 crore (10 billion KRW) and interest amount of Rs 0.07 crore (0.01 billion KRW) to BNP Paribas and principal amount of Rs 204 crore (30 billion KRW) and interest amount of Rs 0.19 crore (0.03 billion KRW) to Bank of America. In a statement to the bourses, Mahindra said, “Whilst the company has made a commitment to cover the above-mentioned loans given by the banks, its final liability will be limited to the extent not recovered from SYMC.”SYMC has total outstanding loans aggregating Rs 680 crore (100 billion Korean Won), which includes approx. Rs 408 crores from JP Morgan Chase Bank, N.A., Seoul Branch, approx. Rs 68 crores from BNP Paribas, Seoul Branch and approx Rs. 204 crores from Bank of America, Seoul Branch. Mahindra has been looking for a partner for the beleaguered Korean subsidiary. The company has devised a strategy to exit from the loss making subsidiaries and underperforming businesses as it aims to bolster the return on equity for its shareholders. SYMC, which was struggling amid competition from rival Korean firms, plunged deeper into the red after Covid-19. Hit by the impairment at SYMC, Mahindra reported its first quarterly loss in March quarter of FY20, in almost two decades.