SsangYong Motor Company (SYMC), the South Korean car manufacturer wholly-owned by Mahindra and Mahindra has defaulted the due date of 14 December in repaying dues worth Rs 408 crore to its lenders like BNP Paribas, JP Morgan Chase Bank, and Bank of America and as a result, filed for restructuring support program at the Bankruptcy Court in Seoul.
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 returns to its normal company status without harm to its reputation. Meanwhile, SsangYong Motors UK will continue its business operations unaffectedly.
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.”
