Ssangyong Motor is going through corporate rehabilitation procedures in 11 years… ‘Sold Maginot Line’ at the end of February
[위클리서울=우정호 기자] In 2009, Ssangyong Motors faced a crisis again after 11 years when it applied for corporate rehabilitation procedures in December of last year, which suffered the so-called’Ssangyong Motor Incident’ in which union members occupied the Pyeongtaek plant and made a protest when it carried out large-scale restructuring through corporate rehabilitation. . As the court accepted Ssangyong Motor’s autonomous restructuring support (ARS) program, the decision to commence the rehabilitation process was pending until the 28th of next month, while Ssangyong Motors sold shares with the Korea Development Bank, India’s Mahindra, the largest shareholder, and the US automobile retailer HAAH Automotive. They are negotiating. The Ssangyong Motors union also expressed its position to cooperate with the sale on the premise of “guaranteed total employment,” and when the Industrial Bank, the largest creditor of Ssangyong Motors, issued a “prohibition of any labor disputes until the turn of the black” as a condition of support, the union was protesting.
Negotiations on the sale of Ssangyong Motor in the fog… Margin route is’February 28′
Ssangyong Motor, whose short-term debt repayment was difficult due to continued business difficulties, Ssangyong Motors applied for corporate rehabilitation procedures (former legal management) to the Seoul Rehabilitation Court on December 21 last year. Ssangyong Motor’s total loan amount is estimated at 300 billion won, and short-term debt as of December last year was estimated at 165 billion won.
Ssangyong Motor Co., Ltd. applied for an autonomous restructuring system (ARS) in this corporate rehabilitation procedure, and through this system, the decision period for the rehabilitation procedure was extended from one month to three months. As a result, Ssangyong Motor will be able to operate its normal business until February 28 and adjust its debts autonomously with creditors.
Ssangyong Motor is discussing the sale of its stake by forming a consultative body with Korea Development Bank, India’s Mahindra, a major shareholder, and US automobile retailer HAAH Automotive.
Currently, Ssangyong Motor’s major shareholder Mahindra Group is in a position to actively promote the sale of a third party within the corporate recovery period. It means to put down the position of the majority shareholder.
Anish Shah, Chief Financial Officer (CFO) of Mahindra Group, said at a New Year’s online press conference on January 1, ▲When the sale of Ssangyong Motors, management rights will be handed over ▲Even if the sale is not completed within February 28, this fiscal year Until the end of (March 31 in the case of India), it has been said that it will reorganize its position as a major shareholder.
Ssangyong Motor and the labor union (business union) are also agreeing to sell to a third party. Ssangyong Motors’ union plans to cooperate with the sale on the premise of’guarantee of total employment’.
Industrial Bank, the largest creditor of Ssangyong Motor, requested the Mahindra Group to extend payment guarantees for foreign bank loans worth 130 billion won in the sale discussion, and Ssangyong Motor is known to have requested a strong self-reliance plan.
In addition, at a New Year’s online press conference on the 12th, Korea Development Bank Chairman Lee Dong-geol demanded that Ssangyong Motor’s support conditions ▲an extension of the collective agreement validity period of 1 year → 3 years ▲ prohibition of any industrial action until the surplus.
Chairman Lee Dong-geol said, “We clarify to Ssangyong’s labor and management that this is our last rehabilitation opportunity,” and “Even if this investment is successful, if the investment fails to produce good results and insolvency occurs, Ssangyong Motor will end. No one will apply any more.”
Metal Workers’ Union, “Korea Development Bank, Ssangyong Motor should support rehabilitation and secure employment”
On the other hand, there are concerns that the layoffs that Ssangyong had suffered in 2009 after applying for rehabilitation procedures in December of last year and the bankruptcy of partner companies may occur again.
It is predicted that large-scale restructuring will not take place as in 2009, as Ssangyong Motor plans to withdraw its rehabilitation application if it escapes from the immediate debt repayment crisis. Ssangyong Motor sent over 1700 employees through restructuring in 2009 when they applied for the start of the rehabilitation process.
Among them, Ssangyong Motor’s branch of the metals union held a press conference in front of the Yeouido Industrial Bank in Seoul on the 21st and urged the Industrial Bank to support Ssangyong Motor’s rehabilitation and guarantee workers’ employment.
At the meeting, the union argued, “What the Korea Development Bank should do is not to demand a one-sided concession (to the union), but to secure employment and secure a vision for the future.”
“The crisis that started from the beginning of last year was the result of poor management by Mahindra, the major shareholders, and Ssangyong’s management. After the acquisition of Mahindra, Ssangyong lost its export market, and its debt increased, and the hard-developed Tivoli platform and engine technology were stolen by Mahindra. “
“For more than 10 years, Ssangyong Motor workers have endured sacrifices and pains in order to save the company by self-reliance, such as no dispute, welfare reduction, and return of wages.” “We are threatening with anti-labor and anti-constitutional remarks that unintentionally extending the validity of collective bargaining agreements and unilateral sacrifices to workers such as pledges of no dispute, and not implementing them, they cannot support even a penny.”
He said, “The job of the KDB is not to hand over the responsibility to the workers, but to support Ssangyong Motor’s rehabilitation and ensure the employment of workers.”
The metallurgical union also issued a letter of protest from the Korea Development Bank.
These include ▲Tivoli’s low-cost technology transfer ▲Hold Mahindra responsible for repayment of overseas borrowings after the sale of Korean assets ▲Don’t sell it quickly ▲Convert bonds into equity ▲Labor and management participate to guarantee employment and secure future vision The composition of the co-crystal structure is included.
In addition to the Ssangyong Motors branch of the metals union, the Ssangyong Motors Labor Union, a number of Ssangyong Motors’ unions, also suggested a plan for the normalization of Ssangyong Motors. This includes guaranteeing total employment, fulfilling Mahindra’s responsibilities, and providing funding from the government and creditors.
‘I’m overwhelmed’… Official letter to the union of Ssangyong Motors “It is difficult to pay normal wages for two months”
Ssangyong Motor, which is experiencing a serious deterioration in cash flow, is discussing with the labor union a plan to delay payment of some of its wages this month and next month.
According to industry sources on the 22nd, Ssangyong Motor sent an official letter to the union on the 21st to delay some of the wages for January and February, and the union executive held a delegate meeting on the day and delivered related matters.
However, as some foreign parts makers, such as Borg Warner Ochang (T/C assembly) and Continental Automotive (combi meter), announced that they could not supply parts without payment in cash, Ssangyong Motors provided cash to some companies on a daily basis. It is paying.
It is known that at the meeting of the delegates on this day, a plan to delay payment of wages for members by 30-50% was discussed.
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