Mahindra set to announce new buyer for SsangYong next week
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SsangYong has filed for court receivership with the Seoul Bankruptcy Court after failing to repay loans of about 60 billion won (Rs 408 crore) due on December 14 to lenders including JPMorgan Chase, Bank of America and BNP Paribas.
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MUMBAI: Mahindra and Mahindra said that it was close to getting a buyer onboard for its ailing South Korean subsidiary SsangYong and may sign a term sheet as soon as next week.
The signing of the term sheet will mean “that the deal is more or less agreed to, but not concluded,” according to Pawan Goenka, managing director of Mahindra and Mahindra.
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SsangYong Motor said its parts delivery deadlock is showing signs of alleviating as one of the key partners resumed supply. AFP
SsangYong partially solves supply deadlock
Sun, 27 December 2020
South Korea’s SsangYong Motor, which recently filed for court receivership due to a liquidity crunch, on December 24 said its parts delivery deadlock is showing signs of alleviating as one of the key partners resumed supply.
A company official said: “Hyundai Mobis has announced that it will start supplying head lamps again, starting on December 29.”
The cash-strapped automaker had announced on December 23 that it will suspend the operation of its Pyeongtaek factory on December 24 and 28 after its suppliers refused to deliver parts.
Cash-strapped Ssangyong Motor partially solves its parts supply deadlock koreaherald.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from koreaherald.com Daily Mail and Mail on Sunday newspapers.
South Korea s SsangYong Files for Bankruptcy
SsangYong faced financial problems even before the outbreak of the pandemic.
75% of SsangYong is owned by India s Mahindra & Mahindra industrial giant.
The pandemic has prompted company to miss a $54.5-million loan payment.
SsangYong Motor, 75% of which is currently owned by Indian conglomerate Mahindra & Mahindra, has applied for court receivership after it missed a loan payment of 60 billion won ($54.5 million). The company indicated that it had delayed the repayment due to worsening business conditions, and had been unable to reach a deal with creditors to extend the maturity date of the loan payment.
The company has also filed for autonomous restructuring support, which is a private loan restructuring program that could allow it to delay rehabilitation procedures for up three months.
Mahindraâs South Korean Arm SsangYong Motors Files For Court Receivership
Mahindraâs South Korean Arm SsangYong Motors Files For Court Receivership
The company filed for court receivership after defaulting on payment of up to 60 billion won (approximately Rs 400 crore).
Mahindra currently owns a 75 percent stake in SsangYong Motors.
Mahindra’s lineup includes the Alturas G4 and XUV300 based on the SsangYong G4 Rexton and Tivoli.
It s trying times on the horizon for Mahindra & Mahindra-owned SsangYong Motor Company, as the South Korean carmaker has filed for court receivership after defaulting on payment of loans up to 60 billion won (approximately Rs 400 crore). This is essentially one step short of bankruptcy under the South Korean legal system. In lieu of this, the carmaker has agreed to apply for an Autonomous Restructuring Support (ARS) programme.