Creditors, shareholders approve Mahindra's amended rehab plan for Ssangyong Motor
28 January 2011
Creditors and shareholders of Ssangyong Motor Company have passed an amended Rehabilitation plan by an overwhelming majority, taking a major step in the finalisation of the merger and acquisition process with Mahindra Motors.
The amended rehabilitation package received the full support of Ssangyong's shareholders and mortgage creditors and 94.2 per cent of rehabilitation creditors, surpassing the court mandated majority support requirement.
"I would like to express my deepest gratitude towards the creditors for passing the amended rehabilitation plan, thereby ushering in a new phase of recovery. I would also like to extend thanks to the employees of Ssangyong who have continued to loyally strive for the company's betterment during the challenges of the past two years. Mahindra's international footprint, strengths in R&D and product development will enable SYMC to emerge as a global SUV player," Ssangyong Motor joint receiver Yoo-Il Lee said.
"We are delighted that the amended rehabilitation plan has been approved and now look forward to developing mid-term and long-term strategies for synergy and growth. I would like to thank the shareholders and creditors of Ssangyong Motor Company for their cooperation and employees for their patience with the process," said Pawan Goenka, president of Mahindra and Mahindra's Auto and farm sectors.
"We look forward to regaining Ssangyong's past stature as a leading SUV maker through cooperation between Mahindra and Ssangyong," added Kyu-Han Kim, union leader of SYMC.
The consensus on the rehabilitation plan would help Ssangyong Motor Company eliminate the uncertainty involved in the two-year long rehabilitation process, which began on 6 February 2009. The company can now look for business and seek future growth.