View of Ssangyong Motors headquarters in Pyeongtaek-si, Gyeonggi-do. Photo = Yonhap News
The court has begun the corporate rehabilitation procedure (legal management) for Ssangyong Motors, which has not received a letter of intent from the US HAAH Automotive, a leading investor.
Seoul Rehabilitation Court is Ssangyong Motor(2,770 0.00%)It was announced on the 2nd that it had begun the legal management process for the country. Earlier, it was reported that the court sent an inquiry to the Ssangyong Motor creditors and the rehabilitation court management committee on whether or not Ssangyong Motor started legal management the day before.
The court explained, “We have given Ssangyong Motor a chance twice, but since no meaningful data were submitted within the deadline, the procedure could not be delayed anymore, so we inevitably started the procedure to initiate the rehabilitation procedure stipulated by the Debtor Rehabilitation Act.”
Debtor rehabilitation method 49Article 1 stipulates that if the debtor applies for commencement of rehabilitation procedures, it must decide whether to commence the proceedings within one month. However, on December 21 of last year, Ssangyong Motors applied for legal management Application for withholding the commencement of rehabilitation procedures (ARS program) Initiation of the proceedings was pending while filing together.
The start of court management has not been confirmed. The court said that if Ssangyong Motors proposes an effective improvement plan, it will first review it, leaving room for a while. However, it is a position that the start of legal management is inevitable unless there is any improvement movement.
Earlier, the court set the deadline for submitting the letter of intent from HAAH on the 31st of last month. Accordingly, HAAH, which had delayed its decision to take over several times, decided to give a final answer on the acquisition by that date, but did not send it in the end.
The industry believes that despite HAAH’s firm willingness to take over, investors who hold HAAH’s money line are hesitating to take over Ssangyong Motor, as they believe that Ssangyong’s management situation is worse than expected.
In particular, Ssangyong Motor’s public interest bonds amounting to 370 billion won are said to have been the biggest burden on HAAH. This is because the amount of investment that HAAH initially promised is about 250 million dollars (about 280 billion won). It is explained that Ssangyong Motor’s situation, which is expanding to the extent of its deficit, had to act as a burden. Last year, Ssangyong Motor’s net loss increased by 25.8 billion won from 4785 billion won, which was initially tentatively disclosed. The capital erosion rate also deteriorated to 111.8%.
In addition, there is currently no lineup of eco-friendly vehicles other than the electric vehicle E100, which is scheduled to be released within the year, and the gap in technology with competitors such as future mobility is also analyzed as a reason for the investment intention.
Shin Hyun-ah, reporter of Hankyung.com [email protected]
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