Mahindra & Mahindra (M&M) the pride or India, which was buisnesses across the world, recently said its associate company, Resson Aerospace Corporation, based in Canada, has officially ceased operations, amid tension between India and Canada.

M&M held an 11.18 per cent stake in Resson, which had initiated voluntary winding-up procedures.

"With reference to the captioned subject, we would like to inform you that Resson Aerospace Corporation, Canada, which is an Associate of the Company (‘Resson’) wherein the Company holds 11.18 per cent stake (on a fully diluted basis) through Class C preferred Shares, had filed for a voluntary winding-up," M&M said in a regulatory filing.

"Resson has received a Certificate of Dissolution from Corporations Canada dated September 20, 2023, which was informed to the company," it added.

As a result, Resson has ceased to exist and is no longer considered an associate of M&M, effective September 20, 2023.

Furthermore, M&M stated, "Upon the liquidation of Resson, the company is entitled to receive approximately 4.7 million Canadian Dollars (equivalent to Rs 28.7 crore) as a distribution of proceeds towards Class C Preferred Shares held by the company."

While M&M had stated in its exchange filing that its associate firm Resson Aerospace had filed for voluntary winding-up, the development comes at a time when diplomatic relations have soured between India and Canada.