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.
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.
Mahindra-Owned SsangYong Motor Company Files For Bankruptcy, Autonomous Restructuring Support
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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.
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SsangYong Motor Company (SYMC), the South Korean subsidiary of Mahindra and Mahindra (M&M), on Monday informed the Korean Stock Exchange regarding the commencement of the rehabilitation procedure with the Seoul Bankruptcy Court, M&M said in a notification to the stock exchanges. The development comes a week after the struggling automaker missed the repayment of Rs 480 crore (60 billion Korean Won) to JP Morgan Chase Bank, South Korea, which was due and payable on December 14. SYMC has also applied for an Autonomous Restructuring Support (ARS) programme which is a court-designed process, the notification said. “If the 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,” M&M said in the statement.