Updated: Apr 17, 2021
Now SsangYong Motor will go into court receivership by the Seoul Bankruptcy Court to restore the company.
SsangYong had been bought by Mahindra in 2010 when the Korean company was almost bankrupt. Mahindra is a majority holder in the company with a 74.65 percent stake. The Korean major had defaulted on loan repayment in December 2020 and then applied for receivership to the court.
The company will have to submit a rehabilitation plan by June 2021 to the Korean Bankruptcy Court.
"We plan to promote the early termination of the rehabilitation process through the completion of the M&A, such as selecting an advisor in the shortest possible time in consultation with the Seoul Bankruptcy Court," SsangYong said in a statement. In 2020, its operating loss had stood at 449 billion Won (the US $401.76 million) – up from 282 billion loss in 2019. The company’s sales registered a decline of 20% from the previous year's figures of 107,416 units. Its revenues registered a decline of 19%, to three million Won in 2020.