On the 5th, the front gate of Ssangyong Motor’s Pyeongtaek factory in Pyeongtaek-si, Gyeonggi-do. yunhap news
It is known that the court aims to’early graduate from court management’ for Ssangyong Motor, which is experiencing a business crisis.
According to the industry on the 4th, the Seoul Rehabilitation Court told Ssangyong Motors that it would review early graduation when the corporate rehabilitation process begins.
In general, it takes four months to submit a rehabilitation plan and more than one year to complete the rehabilitation procedure. However, the court believes that Ssangyong Motor’s rehabilitation period can be shortened as much as possible to accelerate normalization. The court will decide whether to start Ssangyong Motor’s rehabilitation procedures as early as the 8th, at the latest next week.
When the court decides to commence the rehabilitation procedure, the claims report, investigation, and rehabilitation plan submission are carried out. When Ssangyong Motors submits a rehabilitation plan, including the rate of cancellation of rehabilitation bonds, the court will confirm the agreement with the creditors and approve it. At this time, if the creditors disagree, the court will adjust, and if it fails, liquidation will be taken.
However, I don’t think the possibility of liquidation is high inside and outside the industry. First of all, regardless of the rehabilitation procedure, the size of public interest bonds such as worker wages that can be reimbursed first reaches 370 billion won. This is because if creditors choose to liquidate, the size of the bonds to be collected after paying off public interest bonds first decreases.
In addition, about 20,000 unemployed people are expected in the event of Ssangyong’s bankruptcy, and it is predicted that the government will not be just watching it ahead of the next presidential election.
The industry estimates that there are about three or four candidates who are willing to take over Ssangyong Motor after legal administration or have indicated their intention to take over. Among them, it is known that mid-sized companies, which were Ssangyong Motor’s partner companies, were also included. Edison Motors, a domestic electric bus company, has submitted a letter of intent to take over to the court. We cannot rule out the possibility that HAAH Automotive, which was mentioned as a major investor, will re-enter after restructuring.
An industry official said, “Some companies that can put in cash between 200 billion and 300 billion won are showing interest,” and “it seems to think that there is a vision if slimming through restructuring under legal management.”
Meanwhile, as Ssangyong Motor’s initiation of legal management has become a prerequisite, the concerns of partner companies and executives and employees are deepening. In the industry, 7 or 8 small suppliers have already gone bankrupt, and there is also an expectation that bankruptcy may lead to companies with weak financial structures. In addition, more and more people are leaving the company on their own before restructuring their workforce. Ssangyong Motor’s number of employees decreased from 5,003 at the end of 2019 to 4,869 at the end of last year, and it is reported that the resignation will continue this year.
Kim Kyung-jun reporter [email protected]
News directly edited by the Hankook Ilbo can also be viewed on Naver.
