Mahindra and Mahindra may soon finalise buyer for ailing SsangYong Motor Company
In December, the SsangYong Motor Company was unable to meet its obligations for debt payments and had to apply for court receivership. Mahindra and Mahindra is now in the advanced stage of talks with a potential investor for the subsidiary.
Mahindra and Mahindra is in an advanced stage of talks with a potential investor for its ailing South Korean subsidiary, SsangYong Motor Company, and is hopeful of signing a term sheet with it by next week. After the transaction, the investor will hold a majority stake in SYMC, while M&M’s stake will come down to about 30% or below, MD Pawan Goenka said on Friday.
In December, SYMC was not able to meet its obligations for debt payments and had to apply for court receivership. Along with it, Ssangyong had also requested for ARS scheme from the court, under which the court gives approval to the company to find solution on their own in a given time frame. During this time the company is managed by the company management and the court does not intervene. The court has given time till February 28.
“This means we have two months from now to conclude the deal with the investor. If the deal concludes then the company continues as normally, if it does not then the company goes into court receivership and management presently is taken over by the court. So, that will be known on March 1, and we hope to conclude the deal with the investor,” Goenka said.