SsangYong Motor in Dire Straits after Fail to make a Loan Repayment of 60 Billion Won
The ailing South Korean automaker said in a statement that they have filed for bankruptcy after failed to make a loan repayment of about 60 billion won (S$78 million) with foreign banks. As SsangYong owes Bank of America about 30 billion won (S$39 million), JP Morgan Chase 20 billion won (RM73.2 millionS$23 million), and BNP Paribas 10 billion won (S$13 million).
As currently, Mahindra and Mahindra which hold a 74.65% of stake in SsangYong have said that the due was on December 14 where previously it said would be pumping US$423 million(S$566 million) into SsangYong to make it profitable by 2022 but after the Covid-19 breakout, it has ended that planing. And Mahindra would no longer invest in SsangYong and asking SsangYong to look elsewhere for the funding. And the Indian company would be willing to let go of their ownership and stake for anyone looking to buy over SsangYong.
As sales currently are being low at the moment in Korean carmaker, where it only sold 97,000 vehicles between January to November, which is 20% of sales compared to 2019.
