![[단독] Ssangyong Motor’s bill, converted to loans… Emergency support for government and business partners](https://file.mk.co.kr/meet/neds/2020/12/image_readtop_2020_1339941_16094020634492003.jpg "[단독] Ssangyong Motor’s bill, converted to loans… Emergency support for government and business partners")
The government is expecting to be able to prevent factory shutdown due to a boycott of business partners by converting the discount bills into loans.
Earlier, Ssangyong Motor stopped operating its Pyeongtaek plant for two days on the 24th and 28th due to the refusal of supplying parts to five large business partners. Ssangyong Motor Co., Ltd. paid about half of the bills related to the delivery price in October, which was due in December, to its partner companies in cash on the 29th and 30th. Accordingly, Hyundai Mobis and S&T Heavy Industries resumed supply, and LG Hausys decided to temporarily resume supply, and the Pyeongtaek plant went into operation again.
Through this loan conversion, suppliers can improve the safety of payment of residual bills. A government official explained, “From the beginning of next year, we will be able to execute various policy funds through a one-on-one response by each supplier.”
However, the industry believes that it is too early to be comfortable with these measures. First of all, it is unclear whether the loan conversion measures will work at the front line. Even if the bank cooperates, there is a possibility that some companies will not be able to deliver in early 2021 unless they pay cash. The handling of bills after October, when the maturity is due in the future, is also a problem.
[서진우 기자 / 오찬종 기자]
Ssangyong Motor took a breath… Factory operation is’Mountain to Mountain’
Payment of bills of 80 billion won loan conversion
Large parts makers have not yet resumed supply
In case of factory shutdown
For Ssangyong Motor, whose commencement of corporate rehabilitation procedures (formerly legal management) has been postponed until the end of February, the government has announced that it will try to convert bills from suppliers’ delivery payments to loans, but there are many difficulties ahead of the normalization of Ssangyong Motors.
First, on the 31st, Ssangyong Motor’s partner companies expressed their welcome at once to the government’s willingness for efforts. However, the Ssangyong Motor Cooperative Association, which recently formed an emergency countermeasure committee, is not in a position to be relieved until the supply price problem has been completely resolved.
On the afternoon of that afternoon, Choi Byeong-hoon, Vice-Chairman and Secretary General of the Ssangyong Motor Cooperative Association, said, “Since Ssangyong Motor’s Pyeongtaek plant is properly operated and sales are generated, small and medium-sized suppliers can survive. “I want to go,” he said, “if the government and the financial sector can help together, it will be a great help if the suppliers can hold the delivery price in cash.”
According to the Ssangyong Motor Cooperative Association, out of a total of 178 billion won in parts related to Ssangyong Motors supplied by 240 small and medium-sized suppliers of Ssangyong Motors in October 2020, 70 billion won was paid by Ssangyong Motor, and 28 billion won was resolved by extending the draft date in cooperation with the government and the Financial Services Commission. . However, the remaining 80 billion won has not yet been returned in cash and remains as a draft. The government and the financial sector decided to put off a rush of fire on the 80 billion won issue.
However, this is only the price that was decided to be delivered in October and settled in December, but the payment in January for the delivery in November remains. Ssangyong Motor can pay this price only by properly operating the Pyeongtaek plant and making sales. This is why the factory operation is desperate.
Regarding Ssangyong Motors, which applied for corporate rehabilitation proceedings due to failure to repay the 165 billion won in loans from KDB Development Bank and foreign banks, the Seoul Rehabilitation Court decided to delay the commencement of the procedure until February 28 and operate the self-structuring (ARS) program. I have decided. Although the ARS program has begun, it will not be easy for the Ssangyong Motor plant to return to its full normalization. On the 24th and 28th, Ssangyong Motor’s Pyeongtaek plant was not in operation at all, and on the 29th in the morning, Hyundai Mobis and S&T Heavy Industries resumed supplying parts and some of the factories returned, but LG Hausys, Borg Warner Ochang, and Continental Automotive immediately delivered delivery. Did not resume.
In the end, the key depends on whether Ssangyong can increase sales and attract new investments through high-strength restructuring by operating the plant quickly and normally. Ssangyong Motor plans to resolve the liquidity crisis by completing new investment negotiations with US automobile retailer HAAH Automotive through India’s Mahindra Group, a major shareholder.
However, it is known that HAAH has set a policy that Mahindra can invest by participating in a capital increase only by reducing its existing stake. It is asking to lower Mahindra’s current 74.6% stake in Ssangyong to less than 30%. However, the Indian government does not allow Mahindra to sell more than 25% of its shares to foreign-invested companies. If Ssangyong Motors enters into the actual corporate rehabilitation process without attracting new investments until the end of February, Mahindra loses management rights.
[서진우 기자]
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