The Middle East’s largest automaker, Iran Khodro Company (IKCO), has reportedly sunk deeper into red to the tune of about $9 billion.
Jamshid Imani, IKCO’s Deputy Managing Director, said that the company’s debts stood at more than $9 billion and its assets $10 trillion, Donya-e-Eqtesad daily reported.
On Wednesday, Iran’s Monetary and Credit Council announced that it has agreed to the $1-billion government-backed rescue package for Iran Khodro.
According to Imani, half of the aid will be available “within days.”
“The rest will be made available after the sale of Iran Khodro’s shares through Parsian Bank,” Imani added.
Imani also blamed former managers of the company for the financial crisis in the ailing automaker.
IKCO Chief Executive Javad Najmeddin also acknowledged that the past investments in the company were not profitable.
IKCO’s huge debts are now threatening to force it into insolvency, with the possible loss of thousands of industrial jobs.
Reports say that thousands of the company’s shareholders are looking forward to Iran Khodro’s annual shareholders’ meeting, which will probably be held on August 11.