[단독] Byung-tae Yee, president of Ssangyong Motor, resigned… Court Administration Countdown

It is known that Ssangyong Motor’s president Ye Byung-tae, who is in the process of legal management (rehabilitation procedure), has stepped down. As a result, the negotiations for the sale of Ssangyong Motor-HAAH Automotive, led by Yee, were completely overturned, and the court officials started counting down. According to the automobile industry and courts on the 6th, President Ye submitted his resignation on the 5th, and Ssangyong Motors recommended Jung Yong-won (Head of Planning and Management Division) to the Seoul Rehabilitation Court as the legal manager. Yee reportedly said that the reason for the resignation was that he did not have experience as a court manager and that he was not suitable for the job.

However, the actual reason for the resignation is the failure to attract investment from HAAH. President Ye planned to receive a letter of intent (LOI) from HAAH and submit it to the court by the deadline of last month, the 31st of last month. Based on this, the short-term court management program’P Plan’ was intended to be conducted, but HAAH did not submit an LOI until this day.

On this day, KDB Development Bank, the representative of the Ssangyong Motor Creditors Council, announced that it was planning to submit the opinions of the creditors to the Seoul Rehabilitation Court on the commencement of Ssangyong Motor’s rehabilitation procedures, but some of the opinions of the creditors were not gathered, so the submission schedule was being adjusted. The Seoul Rehabilitation Court sent Ssangyong Motor’s creditors an inquiry form asking if Ssangyong Motor’s rehabilitation procedure was initiated on the 1st and requested a reply by the 6th. It is known that the Bank of Korea has gathered opinions that internal rehabilitation procedures are inevitable. The Sang-eun determined that HAAH did not intend to take over Ssangyong Motor last summer, but did not submit the LOI by the deadline (end of last month) imposed by the court.

The initiation of the rehabilitation procedure is entirely decided by the court. As soon as the court receives the opinion of the creditors, it initiates a review and makes a decision promptly. It is expected that the rehabilitation process will commence next week after receiving opinions from creditors within this week.

As the court commences the rehabilitation process, it is expected to prioritize the merger and acquisition (M&A) of Ssangyong Motors. An official from the Seoul Rehabilitation Court said, “From immediately after the rehabilitation procedure begins until it is terminated, it is possible to terminate the procedure through M&A at any time.” Currently, there are two or three places that have expressed interest in the acquisition of Ssangyong Motors, including private equity fund Park Seokjeon & Company, and electric bus manufacturer Edison Motors. Park Seokjeon & Company has already submitted a letter of intent to purchase and invest in Ssangyong Motor’s management rights to the Seoul Rehabilitation Court on the 31st of last month. If the M&A fails, the normal rehabilitation process proceeds. Considering the continuing enterprise value and liquidation value, if the continuing enterprise value is greater, a rehabilitation plan is prepared and proceeds, otherwise it is liquidated.

Meanwhile, the union of Ssangyong Motors submitted a petition to the Seoul Rehabilitation Court on the 5th. The union pointed out the management’s mistake as the cause of Ssangyong Motor’s stepping on the threshold of legal management, and said that it opposes Yee’s appointment as president. However, when President Ye resigned, the union’s petition was naturally accepted.

[윤원섭 기자 / 서동철 기자 / 홍혜진 기자]
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