Mumbai: Creditors and shareholders of Ssangyong Motor Co, the Korean automaker, that was acquired by Mahindra and Mahindra Ltd in November last year, have approved the amended rehabilitation plan for turning around the operation of the beleagured company.
“The amended rehabilitation plan, required a 100% majority of each rehabilitation mortgaged creditors and stockholders and 94.2% of rehabilitation creditors. Ssangyong can now terminate its 2 year long revival process, which began on 6 February 2009,” said the company in a statement. The early termination will help in eliminating uncertainties for all involved stakeholders in the company it further added.
In accordance with the court approved rehabilitation plan, the new measure will include the issuance of new stocks and corporate bonds, through 5 February, which is five business days after the approval. This will be followed by repayment of rehabilitation claims starting from first week of February and application for termination of rehabilitation procedure upon payment of claims in early March.
The troubles at Ssangyong, which commanded one-fourth share in Korea’s UV market in 2003-04, started after rising oil prices and slowing demand due to the global slump, which hit sales of its UVs. In February 2009, the company was granted court protection from its creditors.