SsangYong

BENGALURU (Reuters) -Indian carmaker Mahindra & Mahindra said on Thursday that a deal to sell its bankrupt unit, SsangYong Motor Co, to South Korean electric carmaker Edison Motors Co had been terminated.

SsangYong Motor has signed a memorandum of understanding with BYD Auto to develop car batteries and produce battery packs for its models

The company has been under court receivership since April, as its Indian parent, Mahindra & Mahindra, failed to secure a buyer for its 75 percent stake in the automaker.

SsangYong applied to the court in December for receivership after it defaulted on a loan repayment

The maker of XUV500 and Scorpio has got a nod from the country's central bank to reduce its stake in Ssangyong to 25 per cent from the current 75 per cent through capital reduction

Concerns remain on the company's weakening position in the UV segment

Mahindra reported a slump in quarterly profit earlier on Friday, booking a one-time loss of 12.1 billion rupees ($166 million) related to South Korean unit Ssangyong

Company says may sign term sheet next week, deal is more or less agreed; Post sale, Mahindra will hold less than 30% in the firm

JP Morgan has sought repayment of loan worth 40 billion Korean wons from Mahindra & Mahindra's troubled foreign arm SsangYong Motor Company (SYMC) but the South Korean auto maker has expressed its inability to pay the amount now. Following the Korean automaker's application for rehabilitation dated December 21, JP Morgan issued a notice to the cash-strapped firm demanding the repayment of an outstanding loan amount of 40 billion KRW (around Rs 268 crore with interest), M&M said in a regulatory filing. "SYMC has today intimated to the Korean Stock Exchange that it could not repay the loan amount of 40 billion KRW to JP Morgan on account of its application for rehabilitation," it added. The Korean automaker has outstanding loans aggregating to 100 billion Korean Won (around Rs 680 crore) from Seoul-based branches of JP Morgan Chase Bank, BNP Paribas and Bank of America. Last week, M&M had informed the bourses that SYMC has missed repayments of loans aggregating to 60 ...

The development comes a week after the struggling automaker missed repayment of 60 billion Korean Won to JP Morgan Chase Bank, South Korea, which was due on Dec 14

Move comes a week after the troubled automaker defaulted on a loan repayment to JP Morgan

M&M, which owns a 75 per cent stake in SYMC, rescued the sport-utility vehicle (SUV) maker from near-insolvency in 2010 but has struggled to revive its fortunes

The South Korea listed SUV maker that has been battered by the pandemic, has outstanding loans aggregating 100 billion Korean Won (approximately Rs 680 crore)

The company expects 2-3 businesses to go public in the next 3 years, some in 3-5 years and the rest in 5-7 years

Group has ten businesses 'which have lot of potential and can grow', says managing director and CEO-designate.

The move is prompted by the steep impairment loss reported by the consolidated entity as SsangYong Motor (SYMC), its Korean subsidiary, and Genzee, its two-wheeler entity in the US, turned in losses.

Mahindra earlier reported a consolidated net loss of Rs 19.55 billion ($258 million), compared with a net profit a year ago, as it booked a writedown on its investment

SYMC's fate hangs in balance as it will need to raise funds from other investors

A decade after Mahindra & Mahindra acquired the South Korean motor company, the automaker is struggling and its Indian parent's three-year plan to pull it out of crisis looks challenging

Mahindra acquired 70 per cent stake in Ssangyong (in March 2011), which had a troubled past and militant trade unions