Debica declares new loan agreements with Goodyear SA

Debica, Poland – D?bica SA has granted PLN305 million (€70 million) in loans under two new agreements with Goodyear SA of Colmar-Berg, Luxembourg, according to a report filed by the Polish company.

Under one agreement, signed 8 Dec 2023, the Polish tire maker granted Goodyear SA a loan worth PLN105 million with the repayment date was set for 1 March 2024.

In the second agreement, entered into on 19 Dec 2023, Debica granted Goodyear SA a loan worth PLN200 million to be repayed by 19 Dec 2024.

The interest rate on both loans per annum was expected to be around 6.24% per annum, based on current market lending rates.

Repayment of the loans is secured by a guarantee from Goodyear SA parent Goodyear Tire & Rubber Co. of Akron, Ohio, which has an 87.251% shareholding in Debica.

Referencing two similar loan agreements from a year before, Debica said the total value of loans granted to Goodyear as of 19 Dec 2023 amounted to PLN700 million.

The Polish company’s document did not explain the rationale behind it making financial loans to the Luxembourg-based Goodyear subsidiary.

Debica produces tires both under its own brand Debica and other Goodyear brands – including: Goodyear, Dunlop, Fulda and Sava.