- SsangYong Motor Company fails in repaying Rs 408 crore debt
- Company applies for rehabilitation before Seoul Bankruptcy court
SsangYong Motor Company (SYMC), the South Korean automaker owned by Mahindra and Mahindra has missed the deadline of 14 December in repaying dues worth Rs 408 crore to its lenders like Bank of America, BNP Paribas, and JP Morgan Chase Bank and as a result filed for Autonomous Restructuring Support (ARS) program at the Bankruptcy Court in its home country.
The company in a statement stated that it delayed in repayment of loans and interest due to worsening of business conditions and has been unable to reach an agreement with its lenders for extension of the maturity date. During the three months of restructuring support program, the company will continue to function with its normal business activities under the directions of the Board.
The company plans to complete the negotiations with the interested parties and reach a final understanding of the restructuring. This will enable the troubled brand to return to its normal company status without causing harm to its reputation. Meanwhile, SsangYong Motors will continue its business operations unaffectedly in the UK.
An official spokesperson from Mahindra said: “During the period of Autonomous Restructuring Support, Mahindra will take responsibility as a major shareholder, and actively cooperate with SsangYong for the normalisation of management through to the early conclusion of negotiations with interested parties.”
