SsangYong sale turns murky on stalled Mahindra-HAAH Automotive talks

[Photo by Lee Seung-hwan]

The chance of troubled South Korean carmaker SsangYong Motor Co. finding new investor before grace period from the bankruptcy court goes up by the end of next month has become dimmer as talks are being delayed due to pricing differences.

Its parent India’s Mahindra & Mahindra has failed to reach an agreement with a potential buyer by the mutually agreed deadline of last week.

A council of four related parties – SsangYong Motor, creditors, Mahindra & Mahindra, and potential buyer, U.S.-based import car distributor HAAH Automotive Holdings – earlier was aimed to reach a settlement until Jan. 22 to finish the talk over stake sale.

The Indian car-making group and HAAH Automotive Holdings, however, could not reach on an agreement by the target date after failing to iron out the differences over terms, according to industry sources and SsangYong Motor’s unionized workers on Sunday.

SsangYong has been given until Feb. 28 to solve its default crisis or otherwise would be placed under court receivership. The Indian car-making group maintains to phase out of Korea.

It currently owns a 75 percent stake in the SUV-focused Korean car producer and is aiming to lower the stake to below 30 percent and retire up to 25 percent after stake sale.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]