SsangYong: the builder submits an application for receivership

SsangYong: the builder submits an application for receivership
SsangYong filed a petition for access to receivership in the Seoul court. The Korean manufacturer finds himself unable to comply with contractual obligations with some of his creditors. The Covid-19 pandemic has severely compromised the finances of many car manufacturers, and SsangYong unfortunately seems to have to pay the most expensive price.

On December 14, it should have met a deadline linked to the repayment of a loan of 66, € 3 million granted by various international banks: Bank of America, JPMorgan Chase and Bnp Paribas. The dialogue to extend the expiry terms of the loan with the three credit institutions was not followed up and SsangYong was unable to avoid the default.


The board of directors of SsangYong was forced to file the petition for receivership, in anticipation of a broad disruption of operations. The goal is to have a short-term program that allows for company support and restructuring: it is three months during which negotiations with the interested parties will continue.

In this way, SsangYong will delay the court decision on the receivership application, giving more time to seek a settlement that can lift the car manufacturer from a sad fate.

Mahindra sells

SsangYong is owned of the Indian group Mahindra, which bought the Korean company from the Chinese Saic. The goal was to seriously relaunch the brand, investing considerable resources and energy. The ambitious expansion plan has not paid off at all and today the Korean brand is heavily indebted and has very little commercial penetration.

Mahindra has thus totally lost interest in SsangYong, owner of 75.65% of the share package, has decided to cancel all investment and refinancing plans, starting to look for interested buyers. The Indian group is willing to give up any economic pretensions in order to get rid of SsangYong. At the moment, no offers have yet reached India which in an official note announces that the sales plans have not changed.