Mumbai (Maharashtra) [India], Dec 21 (ANI): SsangYong Motor Company (SYMC), the South Korean subsidiary of Mahindra and Mahindra (M&M), on Monday informed the Korean Stock Exchange regarding start of a rehabilitation procedure with the Seoul Bankruptcy Court.
The development comes a week after the struggling automaker missed the repayment of Rs 480 crore to JP Morgan Chase Bank which was due and payable on December 14.
SYMC has also applied for an autonomous restructuring support (ARS) programme which is a court-designed process, M&M said in regulatory filings at Indian stock exchanges.
"If the court approves the ARS, SYMC will continue to function under the supervision of its board and will negotiate with stakeholders to reach an understanding about a revival package which may include equity and debt financing and other related actions," it said.
SYMC has also applied for disposition of property preservation and an order of comprehensive prohibition.
The Seoul Bankruptcy Court will deliberate on and review the application and relevant documents submitted by SYMC to determine if the restructuring process of SYMC can commence.
In April, M&M board of directors refused to inject 406 million dollars (about Rs 3,078 crore) as fresh equity in SYMC in light of the Covid-19 impact.
SsangYong is the fourth largest South Korea-based automobile manufacturer owned by Indian multinational automotive company M&M.
The 20.7 billion dollar Mahindra Group has presence in agribusiness, aerospace, commercial vehicles, components, defence, logistics, real estate, renewable energy, speedboats and steel among other businesses. It employs over 2.4 lakh people across 100 countries.