SsangYong Motor Co. has missed the repayment of 60 billion won of debt to its three creditors JP Morgan, BNP Paribas, and Bank of America Merrill Lynch.
The outstanding loans amount to 59.9 billion won with interests of 600 million won.
The debt consists of 30 billion won from Bank of America Merrill Lynch, 20 billion won from JP Morgan, and 10 billion won from BNP Paribas.
According to SsangYong Motor Co., it doesn't have enough funds to repay the debt due to worsening business conditions and it would try to extend the debt maturity with our creditors."
SsangYong's 90 billion-won debt to the state-run Industrial Bank of Korea is due on Dec. 21.
The South Korean subsidiary of Indian carmaker Mahindra & Mahindra Ltd. has been operating for 15 consecutive quarters on a deficit. It sold 96,763 vehicles from January to November, which was a 19 percent fall from last year.
Mahindra has been looking for a partner for the debt-ridden SsangYong as part of its restructuring plan.
Mahindra acquired a 70 percent stake in SsangYong Motor for 523 billion won in 2011 and now holds a 74.6 percent stake in the carmaker.
