Turkish coach and light truck maker Temsa reportedly in debt repayment difficulties with banks

Turkish coach and light truck maker Temsa reportedly in debt repayment difficulties with banks
A Temsa Diamond coach.
By bne IntelliNews December 12, 2019

Turkish coach, bus and light truck maker Temsa is having problems repaying its loan debts to the banks, Dunya business daily has reported.

Company officials declined to comment. The newspaper claimed that creditors have taken legal action against the vehicle producer.

Dunya earlier this week said that Temsa was forced to suspend production until December 23 because of its unspecified financial troubles.

Sabanci Holding, Turkey’s second largest industrial group, divested its stake in Temsa to Switzerland-based True Value Capital Partners for a consideration of Turkish lira (TRY) 183mn.

Temsa produces around 10,000 units of coaches, buses and commercial vehicles annually at its plant in the province of Adana on the Mediterranean coast.

Turkey’s automotive industry is having a bad year. Local sales have collapsed. The latest data showed that auto sales plunged as much as 28% on an annual basis to 389,000 units in January-November. The passenger car market contracted 26% y/y while light commercial vehicle (LCV) sales dropped nearly 39% y/y in the first 11 months of the year.

Related Articles

Romania’s Banca Transilvania plans another takeover in Moldova

Banca Transilvania (BT), the biggest financial group in Romania, plans to take over Microinvest, the leader of the non-bank financial market in Moldova specialised in financing micro-enterprises, BT ... more

Further Turkey rate cut on Jan 16 expected by 13 of 21 surveyed economists

Thirteen of 21 economists surveyed by Reuters said they expected that the Turkish central bank would bring in another rate cut at its monetary policy committee (MPC) meeting on January 16. The ... more

Bulgaria's FIBank plans €103mn capital hike to meet ECB requirements

Bulgaria’s locally-owned First Investment Bank (FIBank) plans to raise BGN200mn (€103mn) in order to cover the capital shortfall found by the European Central Bank during an asset quality review ... more