Ssangyong Motor’s P-Plan Difficulty Takes A Breath…India Central Bank Mahindra Potato Approval

Input 2021.03.10 19:50

The short-term legal manager P plan was also difficult due to a serious liquidity crisis. Ssangyong Motor (003620)The fire was extinguished with the approval of the Central Bank of India (RBI).

According to industry sources on the 10th, Ssangyong Motor is known to have received an official letter from its major shareholder Mahindra, India, stating that “RBI has approved Mahindra’s stake in Ssangyong Motors.” The official letter was reported to contain the agreement to agree to the potato proposal to lower Mahindra’s 75% stake to the 25% level in order to enter the P plan.

Mahindra previously issued RBI approval as a condition of agreeing to cut shares and bonds to enter Ssangyong’s P plan. In the meantime, the Indian government refused to disallow the sale of its own company’s overseas holdings, claiming that it violated the 25% limit, which caused Ssangyong Motor to enter the P plan and find a new owner.

On this day, RBI approves Mahindra’s potato as an exception, and Ssangyong Motor plans to sign an investment contract with HAAH Automotive based on the RBI approval, and disclose the rehabilitation plan to all creditors to obtain consent for the initiation of the P plan.

When entering into the P plan, the majority shareholder Mahindra’s stake is lowered through potato, and HAAH Automotive participates in a capital increase of 250 million dollars (approximately 280 billion won) to become the largest shareholder with a 51% stake. However, it has not been decided whether HAAH Automotive will finally confirm the acquisition of Ssangyong Motor.

It is known that Ssangyong Motor has made plans to complete preparations for entering the P plan by the 15th. In the process, if the contract with the new investor is broken and the P plan is canceled, it is highly likely that Ssangyong will go to court management.