“Request for support corresponding to the investment amount”
HAAH Automotive seems to be pressing the Korea Development Bank’s large amount of support while delaying the final decision on Ssangyong Motor’s P plan (short-term legal management, pre-packaged plan).
The Bank of Korea confronts that it is possible to provide financial support only if it has a rehabilitation plan with guaranteed business feasibility, and the direction of the P plan is drawing attention.
Sang-Hyun Choi, Senior Vice President of Industrial Bank of Korea, said at an online press conference on the 2nd, “The potential investor left Korea without making a final decision on the P plan due to the delay in submitting Ssangyong Motor materials since mid-January.”
It is said that HAAH Automotive could not decide whether to agree to the P plan in a situation where Ssangyong Motor’s specific rehabilitation plan did not come out and thus review was insufficient.
HAAH Automotive side was initially scheduled to leave Korea after negotiations with Mahindra, the major shareholder of Ssangyong Motor, by the 22nd of last month.
The negotiations for the sale of the stake in Ssangyong Motor were eventually wrong, and HAAH Automotive is known to have delayed departure until the end of last month and discussed the P plan.
In the P plan, the share of Mahindra, the majority shareholder (currently 75%), was lowered through potato, and HAAH Automotive participated in a capital increase of 250 million dollars (about 280 billion won) to become the largest shareholder (51%). It is said to be.
HAAH Automotive requested KDB support as much as the funds invested in Ssangyong Motor.
“It is true that potential investors requested support corresponding to the amount of investment in front of creditors,” said Ahn Young-gyu, head of the corporate finance division.
It seems that HAAH Automotive is advocating the logic that the funds invested by HAAH Automotive will be used for Ssangyong Motor’s future strategies such as new car development, and the KDB should support the operating funds.
For the future of Ssangyong Motors emphasized by KDB, KDB will invest 280 billion won, so it is said that the KDB should prepare 280 billion won to overcome the current difficulties.
It is also read as a paving stone aiming at the fact that if the request for support is not accepted and even the P plan is canceled, the theory of responsibility may be raised.
If the P plan fails, Ssangyong’s bankruptcy is inevitable, and in this case, small and medium-sized business partners are expected to go bankrupt.
However, Saneun is already drawing a line saying that if Ssangyong Motor goes bankrupt, the responsibility lies with Mahindra, the major shareholder.
When asked that Ssangyong Motor’s bankruptcy could lead to a liability theory that the KDB did not support early, “We believe that the cause of Ssangyong’s insolvency is due to the management failure of its major shareholders.
I want to ask why I am the responsibility of San Eun.”
As HAAH Automotive is reluctant to support the P plan without Saneun support, the ball has been transferred to Saneun.
The KDB is constantly emphasizing the rehabilitation plan with guaranteed business feasibility.
When Ssangyong Motor and HAAH Automotive come up with a plan, they plan to objectively evaluate business feasibility through external specialized agencies.
It is an atmosphere where both sides compete for strength with a’ping pong game’ over the P plan.
There seems to be no answer except for the current P plan, so there are many observations that the KDB will eventually support loans for the success of the P plan.
It is expected that the final rehabilitation plan prepared by Ssangyong Motor, HAAH Automotive, and Korea Bank will be submitted to the court.
Of course, Saneun also assumes the worst.
Vice President Choi said, “If the P plan fails to attract new investments or the business is not feasible, the normal rehabilitation procedure is expected to be inevitable,” he said. “It is necessary to promote normalization by attracting strategic investors with a high understanding of the automobile industry. I think it is.”
/yunhap news