Synopsis
Mahindra & Mahindra’s 75 percent ownership in Ssangyong will reduce and HAAH Automotive Holdings is expected to become the largest shareholder with a 51 percent controlling stake by purchasing new shares worth $250 million.
Agencies
SsangYong filed for court receivership in December 2020, and the court decided the autonomous restructuring support (ARS) programme before putting it under rehabilitation.
Cash strapped SsangYong Motor Co. is understood to have made an advance payment of 140 million won ($123,806.15) required to start a prepackaged or standard bankruptcy procedure to Seoul’s bankruptcy court, according to Korean media reports.
This experts say is to fast track the sale process to the potential suitor HAAH Automotive Holding before the end of this month.
Mahindra réduit de 75 % sa part dans SsangYong, place à HAAH leblogauto.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from leblogauto.com Daily Mail and Mail on Sunday newspapers.
Synopsis
While Mahindra wants to sell its entire 75% stake in SsangYong Motor to the potential investor, Haah, a US automotive distributor, and some existing stakeholders want the Indian automobile manufacturer to stay in as a minority shareholder and continue to support SsangYong, sources said.
Agencies
According to Seoul Bankruptcy Court, Mahindra had recently repaid 30 billion won, or about $27.1 million, owed to Bank of America.
MUMBAI: Talks between Mahindra & Mahindra, the largest shareholder of SsangYong Motor, and US-based Haah Automotive for sale of a controlling stake in the South Korean carmaker may have hit a roadblock owing to differences, people familiar with the talks told ET.
Synopsis
SsangYong failed to repay the amount to bankers including JPMorgan Chase, BNP Paribas and Bank of America. Mahindra has put SsangYong on the block but has been unable to close a deal with any potential investor.
Getty Images
SSangyong Korando at the Seoul Motor Show 201
MUMBAI: SsangYong Motor Company (SYMC), the South Korean subsidiary of Mahindra & Mahindra (M&M), is in talks with banks to restructure and extend moratorium of its outstanding loans after the Korean major defaulted on the repayment of loans amounting to Rs 408 crore (Korean won 60 billion).
SsangYong failed to repay the amount to bankers including JPMorgan Chase, BNP Paribas and Bank of America. Mahindra has put SsangYong on the block but has been unable to close a deal with any potential investor. Sources in the know told ET that the defaulted loan could have a negative impact on any new investor walking in at this moment.