[M 오토데일리 이상원기자] As Ssangyong Motors has entered the corporate rehabilitation process, attention is being paid to whether new investors will appear during the rehabilitation period.
Ssangyong Motor applied for corporate rehabilitation to the Seoul Rehabilitation Court when it was unable to pay off its loans of KRW 90 billion and Woori Bank, which had expired on the 21st of last month, after overdue 60 billion won borrowed from foreign financial institutions.
The court accepted Ssangyong Motor’s corporate rehabilitation application, corporate property preservation disposition, and ARS program application, and decided to withhold Ssangyong’s decision to commence rehabilitation until February 28th.
During this period, Ssangyong Motor will conduct a normal operation and autonomously discuss restructuring issues with major creditors.
Mahindra & Mahindra, who owns 74.65% of Ssangyong Motor’s shares, announced on the 1st that it is looking for an investor to sell Ssangyong Motor’s stake.
According to Indian media reports, Mahindra’s President Goenka said in a press conference on the day that “we are having serious discussions with investors for the sale of Ssangyong Motor’s stake, and we look forward to a conclusion by next week.”
When the transaction is concluded, Mahindra will be converted into a minority shareholder with less than 30% stake in Ssangyong Motor. Mahindra said it plans to implement 25% of the potatoes allowed under RBI (Central Bank of India) regulations.
Anish Shah, vice president of Mahindra Group, said, “At this point, we are optimistic that there is enough potential for new buyers to come in and continue with Ssangyong.” “If no investors appear, the company will go through a rehabilitation process. “There are other ways to do it.”
“In either case, Mahindra & Mahindra will give up its majority shareholder status until the end of the fiscal year,” he added.
It is reported that Mahindra and Ssangyong Motors are negotiating investments with US automobile retailer HAAH, but no progress has been made for several months.
It is not yet known which companies are the targets of negotiations that are expected to conclude during the next week, which is the president of Goenka.
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