We know everything about bankruptcy
24/11/2024
Sunday
24 November 
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
SSANGYONG MOTOR FILES FOR BANKRUPTCY
The South Korean subsidiary of the Indian auto holding Mahindra and Mahindra (M&M), Mahindra Ssangyong Motor, has filed for bankruptcy. This happened after the automaker missed another payment on the JP Morgan Chase Bank loan in the amount of 60 billion Korean won (40.5 billion rubles) on December 14.
The South Korean Stock Exchange has been informed by SsangYong Motor Company (SYMC) that the company has begun debt reorganization proceedings in the bankruptcy court of Seoul. It is planned that the autonomous restructuring will take place under the supervision of the judiciary.
If the court approves the application of the company, there is a chance that the interested parties will be able to agree on financing issues and bankruptcy will go through in the least painful way.
We should recall that the main share of the South Korean company SYMC in the amount of 74.65% belongs to the Indian automaker M&M. The Indian holding acquired a 70% stake in the South Korean company for $ 438 million in 2011. However, recently, the Korean division began to generate regular losses to the owners, which experts attributed both to the lack of production of new models and to the general state of the automotive market.
At the beginning of the year, Mahindra planned to invest a substantial sum of 230 billion won (155 billion rubles) in the South Korean division. However, this program was not approved at the April meeting of the board of directors. Only short-term assistance from the parent company in the amount of 40 billion won (27 billion rubles) was approved, which could ensure the maintenance of the company for three months.
Against the backdrop of the outbreak of the COVID-19 pandemic, it became clear that it was necessary to look for alternative sources of investments.
An investment of 500 billion won (338 billion rubles) was required to save SYMC. Therefore, the initial idea of bringing the company to a stable profit by 2022 failed and M&M’s sales fell by 88%.
In mid-June, information that M&M was actively looking for an investor and was ready to completely get rid of its assets in Ssangyong Motor leaked to the media. In 2020, they were estimated at $ 273 million. Thus, the company's capitalization has almost halved over the past nine years. Apparently, M&M failed to draw the attention of the foreign investors, which was the reason for filing for bankruptcy.
