SsangYong Motor Co., which is struggling financially, was acquired by South Korean electric car maker Edison Motors Co. The deal came up with a price offer of 304.8 billion won from Edison which was finally accepted by SsangYong.
“The consortium initially asked for a cut of 15 billion won but eventually reached an agreement with a price of around 304.8 billion won. The main manager will be appointed by the court, accounting firm EY Hanyoung,” as quoted by Antara from Yonhap today.
The South Korean electric car maker had to pay at least 10 percent of the total acquisition price at the beginning of the end of this month for the official contract to be signed.
In April, automaker SsangYong was placed under curator court for the second time after undergoing the same process a decade earlier.
Its parent company in India, Mahindra & Mahindra Ltd., failed to attract investors due to the prolonged Covid-19 pandemic and SsangYong’s poor financial status.
The court curator is one short step away from bankruptcy in South Korea’s legal system. In the curator system, which among other things applies to SsangYong, the court will decide the fate of the company and how to revive it.