Mahindra’s Korean subsidiary Ssangyong Motor files for bankruptcy

SsangYong Motor Business (SYMC), the South Korean subsidiary of Mahindra and Mahindra (M&M), on Monday knowledgeable the Korean Inventory Trade pertaining to the commencement of the rehabilitation course of action with the Seoul Individual bankruptcy Court docket, M&M reported in a notification to the stock exchanges.

The improvement comes a week after the having difficulties automaker skipped the compensation of Rs 480 crore (60 billion Korean Gained) to JP Morgan Chase Bank, South Korea, which was because of and payable on December fourteen.

SYMC has also applied for an Autonomous Restructuring Help (ARS) programme which is a courtroom-developed course of action, the notification reported. “If the courtroom approves the ARS, SYMC will continue on to operate under the supervision of its Board and will negotiate with stakeholders to achieve an understanding about a revival bundle which may well include things like equity and personal debt financing and other relevant actions,” M&M reported in the statement.

The Seoul Individual bankruptcy Court docket will deliberate on and review the software and suitable documents submitted by SYMC to establish if the restructuring course of action of SYMC can start. SYMC has also applied for disposition of house preservation and an order of in depth prohibition.

As element of the rehabilitation course of action, the courtroom, even though admitting SYMC’s software, will situation a in depth stay or prohibition order. This is to stop SYMC’s creditors from enforcing any stability claims, and a preservation order for SYMC not to engage in any disposal of house or property with out the court’s acceptance so as to adversely impression the passions of the creditors.

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