Mahindra’s South Korean arm SsangYong Motor files for bankruptcy


PTI, Dec 22, 2020, 11:30 AM IST

New Delhi: Mahindra & Mahindra (M&M) on Monday said its loss-making South Korean arm SsangYong Motor Company (SYMC) has filed for bankruptcy.

The SYMC has filed an application for commencement of rehabilitation procedure with the Seoul Bankruptcy Court under the Debtor Rehabilitation and Bankruptcy Act of South Korea, M&M said in a regulatory filing.

The troubled automaker has also applied for an autonomous restructuring support (ARS) programme which is a court designed process, it added.

”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.

However, some of its decisions will be subject to Court approval, it noted.

The Seoul Bankruptcy Court will deliberate and review the application and relevant documents submitted by SYMC to determine whether or not the court will commence the restructuring process of SYMC, M&M said.

Last week, M&M had informed the bourses that SYMC has missed repayments of loans aggregating to 60 billion KRW (around Rs 408 crore). The Korean automaker has outstanding loans aggregating to 100 billion Korean Won (around Rs 680 crore).

In April this year, the M&M board rejected a proposal to inject any fresh equity into SYMC. The Mumbai-based auto major had acquired the loss-making SsangYong in 2010 but failed to turn it around since then despite several attempts.

M&M holds nearly 75 per cent in the Korean company now and has since invested over USD 110 million.

SsangYong has been struggling with deteriorating earnings since 2017 when it slipped into the red with a net loss of 66 billion wons as against a net profit of 58 billion wons in 2016.

In 2018, its net loss rose to 62 billion wons and then ballooned to 341 billion wons in 2019.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Software engineer in Bengaluru loses Rs 11.8 crore to ‘digital arrest’ scam

Apologise for always insulting Ambedkar instead of doing drama: BJP to Cong on campaign against Shah

No question of forgiving BJP MLC Ravi at any cost for using derogatory word : Minister Laxmi Hebbalkar

Derogatory word against minister: AICC leader Surjewala calls for strict action against BJP MLC

Case registered against unknown persons who attempted to attack BJP MLC Ravi

Delhi polls: BJP issues ‘chargesheet’ against Kejriwal; vows to remove AAP from power

PVR INOX rejigs media biz, appoints Chief Sales Officer Shalu Sabharwal as head

Related Articles More

Epigamia founder Rohan Mirchandani dies of cardiac arrest at age 42

Lohia Auto launches EV brand ‘Youdha’, aims to sell 3 lakh vehicles by 2027

“FM ji FM ji, itna tax main kaise bharun”, asks investor Vijay Kedia in viral post

RBI: After another status quo year, all eyes on a growth-propping rate cut with new Guv at helm

Front-running case: Sebi bans 9 entities from market , impounds illegal gains of over Rs 21 crore

MUST WATCH

Tulunadu Daivaradane

Feeding Birds with Creative Paddy Art!

Areca Nut

HOTEL SRI DURGA BHAVANA

Harish Poonja


Latest Additions

3-year-old girl falls into borewell in Rajasthan

Centre scraps ‘no-detention policy’ for classes 5 and 8 students

Software engineer in Bengaluru loses Rs 11.8 crore to ‘digital arrest’ scam

Apologise for always insulting Ambedkar instead of doing drama: BJP to Cong on campaign against Shah

Farmer who threatened to commit suicide asked to cough up Rs 9.9 lakh by police for security arrangements

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.