Eun Seong-soo, “HAAH asks for more time” regarding the sale of Ssangyong Motor

Input 2021.04.05 13:25

Ssangyong Motor (003620)It is reported that HAAH Automotive, a subsidiary of Chinese Cherry Tea, requested more time in connection with the sale of the company. HAAH has negotiated a new investment form of equity acquisition negotiations with India’s current major shareholder, Mahindra & Mahindra (Mahindra), but has not even submitted a letter of intent. Accordingly, the Seoul Rehabilitation Court is scheduled to decide sooner or later whether the corporate rehabilitation procedure should commence.

After meeting with reporters after meeting with representatives of the financial investment industry held at the Financial Investment Association in Yeouido, Seoul on the 5th, Chairman Eun Seong-soo said, “We waited (for submission of the letter of intent from HAAH Automotive), but we did not come, but said we would not do it. I don’t think I asked for more time,” he said. He said, “I think I should ask for an opinion as soon as possible because I can’t keep putting time on the investing side, and if I don’t get an opinion, I think I should see it as having no intention of investing anymore,” he said.

It is observed that the Seoul Rehabilitation Court will decide whether or not to initiate the rehabilitation procedure (legal administration) as early as this week as Ssangyong Motor could not even submit a letter of intent for investment, let alone an investment contract for HAAH Automotive, until the 31st of last month. The court has also asked the creditors’ opinions on whether or not the rehabilitation process has commenced.

Chairman Eun said, “Because this was the case in the court, I would like to give an opinion that I would like to give it a little more time,” he said. “If I don’t come at that time, I think I have no choice but to go to the rehabilitation process.” He emphasized, “I hope that the labor and management, creditors, and business partners will all give up and save Ssangyong Motor’s benefit to everyone’s interests, so I hope to gather a little more wisdom.”

He added, “If the government has to play a role in the process of gathering wisdom, that part of course will not be avoided.”

Meanwhile, the Seoul Rehabilitation Court verbally informed Ssangyong Motor’s position on the 4th that it would review early graduation when entering the corporate rehabilitation process. The court is scheduled to decide whether to start rehabilitation procedures for Ssangyong Motors as early as the 8th, at the latest next week. The court’s policy is that it usually takes more than 4 months to submit a rehabilitation plan during the rehabilitation process, and it takes more than a year to complete the rehabilitation, but it will shorten it as much as possible.

The industry estimates that there will be 3 to 4 candidates, including Edison Motors, a domestic electric bus company, who are willing to acquire Ssangyong Motor or have indicated their intention to acquire Ssangyong Motor after legal administration. Among them, it is known that a mid-sized company that was a partner of Ssangyong Motors was also included.