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SsangYong Motor again under court receivership
Posted : 2021-04-15 10:23
SsangYong Motor / Yonhap
SsangYong Motor Co. was placed under court receivership once again Thursday as its Indian parent Mahindra Mahindra Ltd. has failed to attract an investor amid the prolonged COVID-19 pandemic and its financial status is further worsening.
The Seoul Bankruptcy Court approved the debt-rescheduling process for SsangYong Motor as U.S. vehicle importer HAAH Automotive Holdings Inc. didn t submit a letter of intent (LOI) to acquire the financially troubled carmaker.
Mahindra had been in talks with HAAH to sell its majority stake in the Korean unit as part of its global reorganization plan amid the pandemic.
updated: Apr 15 2021, 11:10 ist
South Korea s SsangYong Motor has been put under court receivership, the Seoul Bankruptcy Court said on Thursday, in an attempt to rehabilitate the car maker after majority owner Mahindra and Mahindra failed to secure a buyer.
SsangYong applied to the court in December for receivership after it defaulted on a loan repayment.
The South Korean automaker is expected to submit a rehabilitation plan to the court by June. We plan to promote the early termination of the rehabilitation process through the completion of the M&A, such as selecting an advisor in the shortest possible time in consultation with the Seoul Bankruptcy Court, SsangYong said in a statement.
South Korea s SsangYong Motor has been put under court receivership, the Seoul Bankruptcy Court said on Thursday, in an attempt to rehabilitate the car maker after majority owner Mahindra and Mahindra failed to secure a buyer. SsangYong applied to the court in December for receivership after it defaulted on a loan repayment. The South Korean automaker is expected to submit a rehabilitation plan to the court by June. We plan to promote the early termination of the rehabilitation process through the completion of the M&A, such as selecting an advisor in the shortest possible time in consultation with the Seoul Bankruptcy Court, SsangYong said in a statement.
SsangYong had defaulted on a loan payment worth 165 billion won (US$148 million) on December 21, 2020, following which it applied for court receivership. However, the company was given three months to secure funds after saying it was in talks with US-base