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Indian carmaker Mahindra & Mahindra said on Thursday that a deal to sell its debt-ridden unit, SsangYong Motor Co Ltd, to South Korean electric carmaker Edison Motors Co had been terminated.

SsangYong has been under court receivership since last April in an attempt to rehabilitate the carmaker after majority owner Mahindra and Mahindra failed to secure a buyer.

"Based on our enquiry, the receiver of SsangYong Motor had informed us today that the agreement between a consortium led by Edison Motors Co and SYMC to acquire the debt-ridden SYMC through a primary equity investment in SYMC has been terminated by Ssangyong, after consultation with the Seoul Bankruptcy Court, due to Edison’s inability to deposit the bid amount as per the terms of the investment agreement," M&M said in a filing.

"We are also informed that the Edison Consortium has appealed against the termination of the agreement," it added.

On Thursday, M&M shares closed 0.70% higher at 833.65 apiece on NSE.

Indian automaker Mahindra, which owned about 75% of SsangYong as of September end, has been looking for a buyer for all or most of its stake, which it bought when the South Korean automaker was on the brink of bankruptcy in 2010.

SsangYong has been under court receivership since last April in an attempt to rehabilitate the carmaker after Mahindra failed to secure a buyer.

In January this year, SsangYong Motor had said a consortium led by South Korean electric carmaker Edison Motors Co had agreed to buy it for 1,882 crore.

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