M&M to sign term sheet next week for SsangYong stake sale smetimes.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from smetimes.in Daily Mail and Mail on Sunday newspapers.
Mahindra and Mahindra said is in the final stages of getting a buyer on board for its ailing Korean subsidiary Ssangyong Motor Co (SYMC) and is likely to conclude the deal by February end, company’s top officials told reporters on Friday. “We may sign a term sheet for SYMC next week. The deal is more or less agreed. We will conclude it by February 28, if everything goes as per the plan,” Pawan Goenka, managing director and CEO said. Post the sale, Mahindra will hold less than 30 per cent equity in the maker of Rexton and Tivoli SUVs, said Goenka.
Mahindra and Mahindra’s (M&M) second stint with Ford Motor Co as a joint venture partner has ended before it could start. The two companies have called off the proposed equity collaboration as part of which Ford would have ceded control of the Indian subsidiary to Mahindra. With the JV off the table, the duo will pursue independent strategies in the world’s fifth largest auto market. Meanwhile, M&M is also expecting to conclude a deal with a potential buyer for sale of its stake in Ssangyong Motor Co by February end. Both the developments reinforce the strategy of a tighter capital allocation which the Anand Mahindra-led firm embarked upon in the beginning of the ongoing fiscal. It also is an indication of the far reaching implications of the Covid-19 pandemic and its impact on the business plans of companies in India and globally.
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.
SsangYong Motor Co. has failed to repay loans worth Rs. 408 crore, which were due on December 14.
SsangYong Motor Co. has failed to repay loans worth Rs. 408 crore, which were due on December 14. The Korean carmaker has since filed an application with the Seoul Bankruptcy Court.
The application was filed under the Debtor Rehabilitation and Bankruptcy Act of South Korea for the commencement of rehabilitation procedure. The company has also applied for the Autonomous Restructuring Support (ARS) program. It is a court-designed process under which the company will be allowed to function under the supervision of its Board. The Board will also try to work out a revival package with all stakeholders.