Mahindra’s Korean subsidiary Ssangyong Motor files for bankruptcy

SsangYong Motor Enterprise (SYMC), the South Korean subsidiary of Mahindra and Mahindra (M&M), on Monday informed the Korean Stock Exchange concerning the commencement of the rehabilitation treatment with the Seoul Bankruptcy Courtroom, M&M claimed in a notification to the stock exchanges.

The progress will come a 7 days soon after the battling automaker missed the repayment of Rs 480 crore (60 billion Korean Won) to JP Morgan Chase Bank, South Korea, which was owing and payable on December 14.

SYMC has also used for an Autonomous Restructuring Aid (ARS) programme which is a courtroom-created process, the notification claimed. “If the courtroom approves the ARS, SYMC will carry on to operate underneath the supervision of its Board and will negotiate with stakeholders to reach an being familiar with about a revival bundle which could incorporate equity and personal debt financing and other linked steps,” M&M claimed in the assertion.

The Seoul Bankruptcy Courtroom will deliberate on and overview the software and suitable documents submitted by SYMC to figure out if the restructuring process of SYMC can commence. SYMC has also used for disposition of property preservation and an order of comprehensive prohibition.

As part of the rehabilitation process, the courtroom, whilst admitting SYMC’s software, will concern a comprehensive continue to be or prohibition order. This is to protect against SYMC’s lenders from implementing any protection promises, and a preservation order for SYMC not to engage in any disposal of property or property with out the court’s acceptance so as to adversely affect the interests of the lenders.

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