SEOUL, Dec. 15 (Yonhap) — SsangYong Motor Co. said Tuesday it has missed the repayment of 60 billion won (US$54.8 million) of debt to its three creditors.
The South Korean subsidiary of Indian carmaker Mahindra & Mahindra Ltd. said 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, 10 billion won from BNP Paribas and 30 billion won from Bank of America Merrill Lynch.
“(The company) doesn’t have enough funds to repay the debt due to worsening business conditions,” the firm said in a regulatory briefing. “We will try to extend the debt maturity with our creditors.”
Its 90 billion-won debt from the state-run Industrial Bank of Korea is due on Dec. 21.
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 of 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.