SsangYong seeks bailout in Seoul
Mahindra unit SsangYong has posted losses in the March, June and September quarters.
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SsangYong Motor Co., the South Korean unit of Mahindra and Mahindra Ltd, has filed for bankruptcy about a week after failing to repay loans.
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. 26 Mar 2021
The development underscores the failure of Mahindra to make headway in the international automotive market through acquisitions as well as new projects. Mahindra recently decided to shut down its US-based electric scooter unit, GenZe, as part of its plan to sell loss-making units.
[News Analysis] SsangYong Motor halts trading as bankruptcy court grants breather |
An exterior view of SsangYong Motor s Pyeongtaek factory in April. (Yonhap)
Stocks of SsangYong Motor halted trading starting Tuesday as the cash-strapped automaker is now under bankruptcy court supervision and has effectively been given a three-month grace period before it enters court receivership.
Eyes are on whether SsangYong Motor to avoid the court-led rehabilitation proceedings by soliciting a new investor in that time.
On Monday, SsangYong Motor said it had applied for an autonomous restructuring support program, when filing for bankruptcy to Seoul Bankruptcy Court for the first time in 11 years.
Mahindra & Mahindra s Unit SsangYong Files for Bankruptcy
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Mahindra & Mahindra s South Korean subsidiary SsangYong Motor Company (SYMC) has filed for rehabilitation procedure with the Seoul Bankruptcy Court.
In a regulatory filing, Mahindra said that SYMC has also applied for an autonomous restructuring support (ARS) programme which is a court-designed process.
SYMC has today intimated to the Korean Stock Exchange, about filing an application for commencement of rehabilitation procedure with the Seoul Bankruptcy Court under the Debtor Rehabilitation and Bankruptcy Act of South Korea, it said.
It said that if the bankruptcy court approves the ARS, SYMC will continue to function under the supervision of its board and will negotiate with stakeholders to reach an understanding about a revival package which may include equity and debt financing and other related actions.
Updated Dec 22, 2020 | 09:37 IST
SsangYong Motor has filed an application for the initiating rehabilitation procedure with the Seoul Bankruptcy Court under the Debtor Rehabilitation and Bankruptcy Act of South Korea. Mahindra & Mahindra-owned SsangYong Motor files for bankruptcy after defaulting on loans worth Rs 602 crore. | Photo Credit: BCCL
New Delhi: SsangYong Motor Company (SYMC), the loss-making South Korean subsidiary of Mahindra and Mahindra (M&M), has filed for bankruptcy after failing to repay loans worth 90 billion won (about Rs 602 crore) due to Korea Development Bank (KDB).
Last week, the cash-strapped carmaker defaulted on debt worth 60 billion won (about Rs 408 crore) to a consortium of banks including JP Morgan Chase, BNP Paribas and Bank of America.