Mahindra owned SsangYong Motors files for bankruptcy

SsangYong Motor Co. has failed to repay loans worth Rs. 408 crore, which were due on December 14.

SsangYong Motor Co. has failed to repay loans worth Rs. 408 crore, which were due on December 14. The Korean carmaker has since filed an application with the Seoul Bankruptcy Court.

The application was filed under the Debtor Rehabilitation and Bankruptcy Act of South Korea for the commencement of rehabilitation procedure. The company has also applied for the Autonomous Restructuring Support (ARS) program. It is a court-designed process under which the company will be allowed to function under the supervision of its Board. The Board will also try to work out a revival package with all stakeholders.

Earlier this year, Mahindra was looking for new investors for SsangYong. Mahindra rescued SsangYong from near-insolvency in 2010 and owns a 75% stake in the company.

Source