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

Turkish lira sags to 7.64 as analysts predict more backdoor tightening rather than formal rate hike

The Turkish lira hit its latest all-time low—of 7.6408 to the dollar—on September 21 against a backdrop in which analysts were predicting that Turkey’s central bank will stick with backdoor ... more

Erdogan ‘shuns Uyghurs as China provides support to ease Turkey’s economic crisis’

The reality of Turkey’s crisis-stricken economy and the financial support China provides to ease its bite have caused Turkish President Recep Tayyip Erdogan to in recent times make no more than ... more

Veteran trader shorts Eurozone debt on expectation European banks will soon be hit by Turkey’s market ructions

The head of macro strategies at Record Currency Management, which oversees $63bn in assets, is reportedly shorting government bonds of Spain, France and Italy—as well as the euro itself—on the ... more