Byung-tae Yee, CEO of Ssangyong Motors. Ssangyong Motor Company
Byung-Tae Yee (photo) CEO of Ssangyong Motors leaves the company taking responsibility for the resumption of corporate rehabilitation procedures.
According to Ssangyong Motors on the 7th, CEO Yee delivered a retirement greeting to executives and employees by e-mail along with an official expression of his resignation at the executive meeting on the morning of that day. The successor is still undecided.
The company’s expression was in response to the start of Ssangyong Motor’s rehabilitation procedures. Earlier, Ssangyong Motors promoted the preliminary rehabilitation plan (P plan), which is an ultra-short-term court official, but HAAH Automotive, a potential investor, did not submit a letter of intent (LOI) until the deadline and went through the rehabilitation process.
“Unfortunately, the decision to commence the rehabilitation process is imminent as the decision to start the rehabilitation process is imminent, and a lot of confusion and difficulties are expected,” said Yee to executives and employees. “I ask you to calmly judge the current situation with a distant view that you will protect yourself and work together.”
“In the past, our company has been carrying out preemptive self-reliance efforts, such as returning wages, suspending welfare and selling assets, unprecedented in the industry. “We have been well overcoming the confusion and difficulties for a while,” he added. “As it is known that there are many willingness to take over Ssangyong Motor, I think it is still too early to despair.”
Main gate of Ssangyong Motor Pyeongtaek factory in Pyeongtaek, Gyeonggi-do. yunhap news
Representative Ye emphasized the importance of cooperation between labor and management in such a period. “I pray that labor and all executives and employees will gather wise wisdom rather than conflict and antagonism to tackle this crisis wisely.” “Employees and employees must take pride in being the best sports utility vehicle (SUV) expert in Korea to secure new investors. Through this, we will be able to secure a stable business base as well as create a foundation for normalization of management.”
Meanwhile, as the sale negotiations conducted by Ssangyong Motor and HAAH Automotive were virtually broken, Ssangyong Motor is expected to enter the corporate rehabilitation process as early as this week. Although it is necessary to find a new investor, the outlook is uncertain as HAAH Automotive, a leading investor, has stepped out.
On the 1st, the Seoul Rehabilitation Court sent a statement of opinion inquiry to Ssangyong Motor’s creditors, including the Korea Development Bank, asking whether Ssangyong Motor’s rehabilitation procedures were initiated. In addition to the consent to the commencement of the rehabilitation procedure, the inquiry form included a request for opinions on issues such as the appointment of a manager and an investigator.
When the rehabilitation process begins, a consulting company specializing in rehabilitation determined by the court will evaluate the surviving value of Ssangyong Motor for 2 to 3 months. If the rehabilitation value is judged to be high, measures to normalize through financial structure improvement and restructuring will be promoted. On the other hand, if the liquidation value of Ssangyong Motor is determined to be high, Ssangyong Motor will stand in the M&A market to find new buyers.
Ryu Jong-eun reporter [email protected]
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