Edison deal with SsangYong off

Edison Motor Company, a maker of electric buses has reportedly appealed against the termination of its agreement to buy SsangYong.

In a BSE filing, Mahindra & Mahindra said the receiver of SYMC had informed it that the agreement between the consortium led by Edison and SYMC to acquire the debt-ridden SYMC through a primary equity investment had been terminated by SsangYong after consultation with the Seoul Bankruptcy Court. Edison’s decision to appeal has also been stated in the filing.

 A report in The Korea Times had suggested the Korean Bankruptcy court has set a new deadline for SsangYong to find a new owner and submit a new restructuring plan by May 1. If submitted in time, the court will decide whether or not to approve the new restructuring plan by mid-October 2022.

For the Korean company, the restructuring deal was expected to be a turning point with the Edison-led consortium agreeing to acquire the debt-ridden SUV manufacturer for $ 254.65 million (approximately Rs 1,882 crore).