SME Times News Bureau | 22 Dec, 2020
Mahindra & Mahindra's South Korean subsidiary SsangYong Motor
Company (SYMC) has filed for rehabilitation procedure with the Seoul
Bankruptcy Court.
In a regulatory filing, Mahindra said that SYMC
has also applied for an Autonomous Restructuring Support (ARS)
programme which is a court-designed process.
"SYMC has today
intimated to the Korean Stock Exchange, about filing an application for
commencement of rehabilitation procedure with the Seoul Bankruptcy Court
under the Debtor Rehabilitation and Bankruptcy Act of South Korea," it
said.
It said that if the bankruptcy 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.
However, some of its decisions will be subject to court approval, the filing added.
The
Seoul Bankruptcy Court will deliberate and review the application and
relevant documents submitted by SYMC to determine whether or not the
court will commence the restructuring process of SYMC.
SYMC has also applied for disposition of property preservation and an order of comprehensive prohibition.
