South Korea's SsangYong Motor, owned by Mahindra & Mahindra (M&M), is looking for a new investor and is targeting completing the sale process by October later this year.
The troubled automaker will likely invite tenders in June and submit a restructuring programme by the first week of July, with the consent of the employees’ union, The Economic Times has reported.
Moneycontrol could not independently verify the story.
SsangYong Motor had filed for bankruptcy, or court receivership, in December 2020 after defaulting on loan repayments. M&M has announced its intention to exit the company, and had looked for investors.
However, M&M failed to secure a new investor for the South Korean company.
Also read: M&M reports Q4 profit at Rs 1,002 crore as demand improves for passenger vehicles, tractors
SsangYong Motor could receive more interest from electric vehicle (EV) makers, The Economic Times reported.
US-based HAAH Automotive is still in the running, the report said. Other potential investors are electric bus maker Edison Motors and a consortium of EV makers along with a private equity fund.
The court-appointed auditor, Ernst & Young Hanyoun will manage the sale process, the report said.
HAAH Automotive had not yet responded when contacted by the publication. A Mahindra & Mahindra spokesperson said, "It is a court-run process and we cannot comment on it."
"The need to quickly find a buyer is to avoid liquidation, but considering the high debt levels in the company and the fresh investments in new product development it needs to make, it's not going to be easy to find a new buyer," a legal expert told the publication.
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