Moving girl
Lee Dong-geul (pictured), chairman of KDB Development Bank, asked Ssangyong Motors to negotiate with a potential investor (HAAH Automotive) with the determination of “living, dying, dying.” Ssangyong Motor Company reiterated its position that it could provide additional funding only by submitting a solid business plan, including new investors.
“You have to throw away everything to get to the port”
Demanding active negotiations with potential investors
At an online press conference on the 15th, Chairman Lee said about Ssangyong Motor’s’P plan’ (short-term court management), “The progress is up and down and it is not smooth.” He said, “Potential investors seem to judge that Ssangyong’s business environment is more serious than originally expected,” he said. “So far, we haven’t been able to decide whether to invest in Ssangyong Motors or not.”
Chairman Lee decided that the Ssangyong Motor Labor Union’s decision was necessary to overcome these difficulties. He compared a restructuring company to a’ship just before sinking in a storm’. He said, “Sailors must throw away everything they throw away and give up what they give up in order to arrive at the port.” “Ssangyong Motor’s labor and management still (I think) feel comfortable,” he pointed out.
Chairman Lee said, “Without an investor, creditors cannot go out first.” After a potential investor is determined, (Ssangyong Motor Company) submits a business plan, and an external expert will objectively verify the feasibility and make a decision. He said, “(Without business value) what number will I live with? It is difficult for (Ssangyong Motor) to survive only with money (new investment).”
Currently, Ssangyong Motor is in a state of complete capital erosion. On the 15th, Ssangyong Motors announced the results of correcting last year’s accounts. The debt increased more than the previous announcement (provisional settlement). As of the end of last year, Ssangyong Motor’s total capital was -88.1 billion won. This means that even if you sell all of Ssangyong Motor’s assets and convert them into cash, you cannot pay off all of your debts.
Reporter Yeom Ji-hyun
