- Three months of Autonomous Restructuring Support (ARS) to end on 28 February 2021
- Likely to confirm the deal by next week
Last week, Mahindra owned SsangYong Motor Company announced that it had defaulted in repaying dues of Rs 408 crore to its lenders – Bank of America, BNP Paribas, and JP Morgan Chase Bank. Now, Mahindra states that it is in talks with a new investor for taking a majority stake in the debt-ridden subsidy. The company is positive and plans to seal the agreement by next week.
While the Indian auto-maker has not disclosed the name of the new investor, we believe that the party will hold majority stake in SsangYong if the talks are fruitful. Mahindra currently possesses a 75 per cent equity stake in the foreign brand. The Seoul Bankruptcy Court has granted a period of three months to the South-Korean carmaker which is due on 28 February 2021. If the brand fails to materialise the negotiation with the interested party, SsangYong will have to compulsorily proceed with Court receivership.
No other specific details concerning the ongoing arrangement are revealed by Mahindra but we expect the company to reveal the same in the coming months. Meanwhile, SsangYong will continue its business operations normally.
