South Korea's Ssangyong Motor Approves Use Of $33 Million Special Fund From India's Mahindra

South Korea's Ssangyong Motor Co Ltd on Sunday said it has approved the use of a 40 billion won ($32.86 million) special fund raised by its biggest shareholder to help ease liquidity concern amid cooling demand due to the coronavirus.

Ssangyong Motor in a statement said its board approved the use of the fund at a meeting on Friday, and that it will use it to resolve imminent liquidity issues and to relieve market concern.

Last week, Mahindra and Mahindra Ltd scrapped a $423 million investment plan in its struggling South Korean unit as automakers save cash to ride out the coronavirus crisis.

The Indian automaker said it would consider a special one-time infusion over the next three months to help SsangYong continue operating while it finds other sources of funding.

(Reuters)