New Delhi: Mahindra & Mahindra’s loss-making South Korean unit, Ssangyong Motor Company (SYMC) (SYMC), called ‘Bankruptcy Action’ Has applied for Mahindra & Mahindra gave this information on Monday. In a communication sent to the stock exchanges, Mahindra & Mahindra said that, SYMC has applied for starting the rehabilitation process in Seoul’s Bankruptcy Court under Seoul’s Debtant Rehabilitation and Bankruptcy Act.
In addition, the troubled vehicle company has applied for the Autonomous Reorganization Support (ARS) program. It is a process prepared by the court. Mahindra & Mahindra said that if the court approves the ARS, SYMC will continue to operate under the supervision of its board and negotiate with shareholders for an agreed upon revival package. The company said that this revival package could be in the form of equity or debt or related action.
However, the company will have to seek court approval for some of these decisions. Mahindra & Mahindra had informed the stock markets last week that SYMC has defaulted in loan payments of around 60 billion KRW (Rs 408 crore). The South Korean company has a debt of about Rs 100 billion Korean Won i.e. Rs 680 crore.
In April this year, Mahindra & Mahindra rejected the proposal to add new equity to SYMC. In 2010, the Mumbai-based automobile company acquired loss-making Sangyong.
