The Korea Development Bank announced on the 27th that it had not been notified by the negotiating parties that it had stopped negotiating the sale of Ssangyong Motors shares.
An official from the bank said, “It is not true that we have been informed of the suspension of negotiations for the sale of Ssangyong Motor.”
The KDB drew a line when it was said that the investor, the US automobile retailer HAAH Automotive, failed to negotiate the sale with Mahindra, India, the major shareholder of Ssangyong Motor, and notified creditors of the suspension of negotiations.
The four-party consultative body, which Ssangyong Motor and the main creditor banks, Saneun, Mahindra, and HAAH Automotive, participated failed to draw conclusions until the 22nd, which was set as a temporary negotiation deadline.
Conflict of opinion between Mahindra and HAAH Automotive at the end of negotiations has been known as a decisive factor in the failure of the agreement.
After Mahindra handed over management rights to HAAH Automotive, it is said that there was a great deal of disagreement over whether to remain as a shareholder.
Mahindra acquired Ssangyong Motors in 2011 and now holds a 75% stake.
The four-party council is currently not in operation.
An official from the bank explained, “Since the sale negotiations between Mahindra and potential investors are prioritized, a four-party consultative body has not been opened recently.”
Considering the time it takes for the stake sale procedure and capital input, the shareholders’ meeting in March, and the deadline for submitting last year’s audit report, in fact, the end of this month is the final deadline for negotiations, but the prospects for the conclusion of the negotiations are uncertain.
It is because there are some sayings that HAAH Automotive is no longer willing to negotiate with Mahindra.
An official said, “Mahindra introduced additional requirements at the last minute of the term sheet negotiations, but we couldn’t reach an agreement.” “If you go to this negotiation, Mahindra may make more demands. There is a saying that HAAH Automotive thinks that it will be.”
Ssangyong Motor applied for corporate rehabilitation on December 21 last year due to liquidity crisis.
The decision to commence the rehabilitation process has been pending until February 28, as the court accepted Ssangyong Motor’s Self-Restructuring Support (ARS) program.
/yunhap news
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