Mahindra & Mahindra Ltd.

M&M would aim to bring Ssangyong Motors of Koreainto its fold near debt free. There are also plans to infuse significant cash into the bankrupt Korean company. It is learnt that M&M would infuse nearly $400 million as equity into Ssangyong to acquire a controlling stake. These funds would be used to repay all long-term debts at around $320 million as of March 2010 post restructuring.

As per M&M estimates, it hopes to bring the Korean company into its fold by December this year or latest January 2011. The company has a positive EBIDTA of nearly 2%. While Ssangyong has a chequered history, recent performances suggest a turnaround in fortunes. For the first seven months of 2010 the company’s sales are 25% higher than the full of 2009. The labour force too has been restructured reducing fixed costs by nearly 37%. Ssangyong posted a positive EBIDTA in the first quarter of the current fiscal after a gap of seven quarters.