Edison Motors-Led Consortium To Buy SsangYong Motor For Rs 1,900 Crore

A consortium led by South Korean electric carmaker Edison Motors is set to acquire SsangYong Motor for 305 billion won or about Rs 1,891 crore.

A Seoul bankruptcy court approved the deal, SsangYong Motor said in a statement.

Debt-laden SsangYong has been under court receivership since April in a bid to restore the carmaker after its majority owner Mahindra and Mahindra Ltd. failed to secure a buyer.

Indian automaker Mahindra which had bought SsangYong Motor when it was near bankruptcy in 2010 for $463 million, decided to let it go earlier this year when the company filed for an application for commencement of rehabilitation procedure with the Seoul Bankruptcy Court under the Debtor Rehabilitation and Bankruptcy Act of South Korea.

The company was however given three months to secure funds after it said it was in talks with U.S.-based HAAH, but that too didn't materialise.

SsangYong sold 84,496 units in the January-December period last year, down about 21.3% year-on-year, filings showed.