Courtesy of “Ssangyong Motor, Review of Early Termination of Court Administration”

It is known that the Seoul Rehabilitation Court aims to close Ssangyong Motor’s corporate rehabilitation procedures (legal management) early.

According to the industry on the 4th, the Seoul association new employee verbally revealed to Ssangyong Motor that “we will consider early termination when entering into legal management”.

In general, it takes more than 4 months to produce documents related to legal management and a rehabilitation plan, and it takes more than a year to complete, but it is interpreted as a means of speeding up.

On the 2nd, the Seoul Rehabilitation Court started the procedure for the start of legal management of Ssangyong Motors. On the 1st, an inquiry form was sent to all creditors asking whether or not.

The decision to invest and sell HAAH Automotive in the U.S. was delayed, and it was determined that the situation could not be observed anymore.

The Seoul Rehabilitation Court compares the surviving value and the liquidation value to decide whether to start legal management. If it enters into legal management, Ssangyong Motor will go through the steps of filing a claim and submitting a rehabilitation plan.

The creditors must decide whether to agree to the debt relief for the bonds. If the agreement is not reached, bankruptcy may result. In some cases, mergers and acquisitions are promoted.

The industry predicts that there will be three to four companies willing to take over Ssangyong Motor, which has been under legal management. Edison Motors, an electric bus company, and mid-sized companies.