Courts enter into court management procedures
HAAH delays acquisition decision
Edison “Follow Up Review”
When Ssangyong Motor, which was seeking rehabilitation by receiving new investments, did not receive an investment letter of intent from HAAH Automotive, an American automobile retailer, the court entered into a corporate rehabilitation procedure (court administration).
Hamyang Edison Motors, who showed strong willingness to acquire Ssangyong Motors, said that it is reviewing follow-up measures while observing the trend of the situation.
In a press release on the 2nd, the Seoul Rehabilitation Court said, “I gave Ssangyong Motors an opportunity two times, but no meaningful data were submitted within the deadline.” “We are going to start the procedure for the start,” he said.
Earlier, the court set the deadline for submitting the letter of intent to take over by HAAH until the 31st of last month. HAAH, which had postponed the decision to take over several times, decided to give a final answer on the acquisition by the deadline, but did not send it in the end.
According to the Debtor Rehabilitation Act, the decision on whether or not to commence rehabilitation procedures must in principle be made within one month from the date of application for rehabilitation procedures unless there are special circumstances, such as the progress of autonomous restructuring support (ARS). However, the start of legal management has not been confirmed. The court left space, saying, “If Ssangyong Motor, creditors, and other interested parties suggest effective improvement measures, we will fully review and judge them.”
As HAAH Automotive did not officially withdraw its intention to invest, Edison Motors’ choice also narrowed.
According to the agreement, Ssangyong Motor can negotiate with other investors only if the contract with HAAH is finally disapproved. It is known that HAAH Automotive has not withdrawn its intention to take over Ssangyong Motor, and both sides are still discussing some conditions.
An official at Edison Motors, who recently announced his intention to acquire Ssangyong Motors, said, “We are closely monitoring the progress of the situation as the situation is rapidly passing.” The official said, “Since the sale of Ssangyong Motors was announced, we have informally conveyed our willingness to take over Ssangyong Motor’s management,” and said, “There is no specific contact with creditors so far.”
Edison Motors was established in October 2015 and produces electric vehicles in Hamyang-gun general industrial complex. Vehicles are e-Fiberd low-floor electric buses and smart T1 electric trucks. Last year, it was the first domestically produced electric bus to be exported to Indonesia. In the second half of this year, the company plans to unveil an initial model of a large-sized electric vehicle and sequentially produce electric vehicle models for passengers.
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Edison Motors “promoted with strong will to acquire Ssangyong Motors”