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KDB to discuss loan rollover for SsangYong this week

A SsangYong Motor Co. official introduces the New Rexton SUV during an online event on Nov. 9, 2020. (SsangYong Motor Co.)
A SsangYong Motor Co. official introduces the New Rexton SUV during an online event on Nov. 9, 2020. (SsangYong Motor Co.)
The state-run Korea Development Bank (KDB), the main creditor of SsangYong Motor Corp., is set to decide on whether to roll over maturing loans extended to the financially troubled automaker this week, industry sources said Sunday.

Last week, SsangYong already missed the repayment of 60 billion won ($54.8 million) of debt to its three creditors.

According to the sources, KDB will discuss whether to roll over 90 billion won in loans due Monday.

The South Korean subsidiary of Indian carmaker Mahindra & Mahindra Ltd. said last week the outstanding loans amount to 59.9 billion won and that the interest is 600 million won, which accounts for 8 percent of its total equity.

The debt includes 20 billion won from JP Morgan and 10 billion won from BNP Paribas.

The financial authorities and the KDB are also in talks over further extending financial help to SsangYong.

The SUV maker has logged operating deficits for 15 consecutive quarters as it fell behind in competition with its Korean rivals.

SsangYong sold 96,763 vehicles in the first 11 months this year, a 19 percent fall from a year earlier, due to weak sales abroad.

Mahindra has been looking for a partner for the debt-ridden subsidiary as part of its restructuring plan.

In 2011, Mahindra acquired a 70 percent stake in SsangYong Motor for 523 billion won and now holds a 74.6 percent stake in the carmaker. (Yonhap)

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