Mahindra & Mahindra Ltd., India’s biggest maker of sport-utility vehicles, is the preferred bidder for a controlling stake in Ssangyong Motor Co., the South Korean automaker said today, Bloomberg reported. Ssangyong, operating under bankruptcy protection, plans to sign a preliminary agreement with Mahindra by the end of August and aims to sign a contract for the sale in November, it said in a statement to the Korea Exchange. The company will begin talks with Indian rolling stock maker Raghav Industries Ltd.

The debt-ridden Korea Land and Housing Corp. (LH), the state-run housing company, says its financial troubles will force it to kill or water down most of its 140 new housing and redevelopment projects around the country, The Korea Times reported. And the government, caught between letting the air out of the bubble and creating another one, is quick to turn its back on its ailing mule, although its ineptitude in real-estate policies is blamed for creating much of LH’s troubles in the first place.

Ailing South Korean automaker Ssangyong Motor said Tuesday it had extended the deadline for final bids for a controlling stake in the firm following requests from bidders for more time, Agence France-Presse reported. The deadline was extended from July 20 to August 10. Ssangyong said six bidders, including an alliance of France's Renault and Japan's Nissan Motor, had joined the race. The preliminary bidders also include Young An Hat, a local headgear company which owns bus maker Daewoo Bus, and India's top utility vehicle company Mahindra and Mahindra, Yonhap news agency said.

Investors are finding a new appetite in the savings bank industry, as troubled thrifts are putting themselves on sale under a government-led restructuring drive, The Korea Times reported. Many savings banks have suffered liquidity problems as a large part of their loans are tied to investments in the depressed property market. Boutique investment bankers in Yeoido, the financial center of Seoul, are busy throwing sales pitches to potential investors these days, sources said Friday. The potential buyers range from private equities to insurance and construction firms.

The hike of the key interest rate in Korea is expected to weigh on households and corporations with large debts, and further cool down already-chilly investor sentiment in the real estate market, The Korea Times reported. The Bank of Korea lifted the benchmark seven-day repurchase rate by 0.25 percentage points to 2.25 percent last week after maintaining it at a record-low 2 percent for almost two years to grapple with the global economic downturn.

South Korean banks have selected 65 companies to undergo a restructuring program - a majority of which will receive support from creditors to normalize operations - as the government pushes the banks to weed out weak businesses that could threaten the economy, Dow Jones Daily Bankruptcy Review reported. The Financial Services Commission and the Financial Supervisory Service said in a joint statement Friday that of the 65 companies, 16 are in the construction sector, three in the shipbuilding sector and one in the shipping sector.

Mahindra & Mahindra Ltd. said Monday it will start due diligence on Ssangyong Motor Co. in the next few days so it can decide on submitting a final bid for South Korea's fourth-largest car maker by sales, Dow Jones Daily Bankruptcy Review reported. Mahindra, India's biggest sport-utility vehicle maker by sales, is among six companies worldwide who qualified earlier this month to conduct due diligence on cash-strapped Ssangyong before submitting their binding bids.

Seven companies have joined the race to acquire Ssangyong Motor Co. by submitting separate letters of intent to deal adviser Macquarie Securities Korea, cash-strapped Ssangyong Motor said Friday, Dow Jones Daily Bankruptcy Review reported. Ssangyong Motor didn't name the seven companies, citing a confidentiality agreement. Local media earlier Friday reported that two Indian companies - Mahindra & Mahindra Ltd. and Ruia Group - as well as three Korean companies: Renault Samsung Motors Corp., Young An Hat Co. and Seoul Invest are interested in bidding for Ssangyong Motor.

Creditors of Daewoo Motor Sales Corp. Tuesday stepped in to keep the vehicle sales and real estate development company afloat reversing an earlier decision to let it go bankrupt after failing to pay back maturing debts, but the decision appears to be a stopgap measure, Dow Jones Daily Bankruptcy Review reported. Tuesday morning creditors paid a combined KRW26.8 billion ($24 million) that was due on Friday and Monday, giving Daewoo Motor Sales a lifeline, main creditor Korea Development Bank said. "But we cannot guarantee payment of additional debts that mature from May.

Creditors of Daewoo Motor Sales Corp. have decided to let the vehicle sales and real estate development company go bankrupt, the main creditor, Korea Development Bank, said Monday. "The debt-rescheduling program for Daewoo Motor Sales may run aground due to the creditors' bankruptcy decision," a KDB official told Dow Jones. The company may be placed under a court receivership, said the official, who asked not to be identified. Daewoo Motor Sales said if it comes under the court protection, it is "the worst-case scenario" they can imagine.