Youngone lends $175 million, or ₣150 million, to Scott Sports

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The board of Korea’s Youngone Corporation decided to lend approximately $175 million (₣150 million) to its Swiss affiliate, Scott Sports, on Dec. 28.

The purpose of the loan is to “secure additional liquidity and to improve financial structures for Scott Sports,” the electronic disclosure said.

“Scott Sports plans to use this cash loan for working capital and will appoint a person designated by Youngone Corporation as a financial controller to manage and supervise the overall process.”

The loan will mature on Dec. 27, 2024. The equivalent of 100 million Swiss francs was scheduled to be transferred around Jan. 2. The remaining sum will be delivered within the year depending on the borrower’s conditions, according to the disclosure.

Scott Sports recorded a net profit of 60.5 billion won in 2022 and 47.9 billion won in 2021.

Previously, Youngone Corporation has announced on September 20, 2022 that it has filed for arbitration to the International Chamber of Commerce (ICC) against Mr. Beat Zaugg, the founder, CEO, the second largest shareholder of SCOTT Corporation SA, claiming that there have been the material breach of the shareholders agreement by Mr. Beat Zaugg.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]