Lee Dong-geol, Chairman of KDB Industrial Bank. yunhap news
KDB Development Bank Chairman Lee Dong-geol demanded that Ssangyong Motors should negotiate with a potential investor (HAAH Automotive) with the resolution of “living, dying, dying, dying, dying, dying, dying.” Ssangyong Motor Co., Ltd. has once again firmly stated that it can provide additional funding only by submitting a solid business plan including new investors.
At an online press conference on the 15th, Chairman Lee said about Ssangyong Motor’s P plan (pre-packaged plan), “The progress is up and down and it is not smooth.” Recently, the Central Bank of India (RBI) overcame a hurdle when it approved a plan to reduce the stake in Ssangyong Motor, the majority shareholder, Mahindra. However, negotiations with HAAH Automotive, which will take over Ssangyong Motors, are creaking. Chairman Lee said, “Potential investors seem to judge that the Ssangyong Motor business environment is more serious than originally expected,” he said. “So far, we have not been able to make a final decision on whether to invest in Ssangyong Motor.”
Chairman Lee’s judgment is that it is time for the Ssangyong Motors union’s decision to overcome these difficulties. He compared the restructuring company to a’ship on the verge of sinking in a storm’ and emphasized that “the sailors must throw away everything they throw away, and give up what they give up in order to arrive at the port.” He pointed out, “Ssangyong’s labor and management are still (I think) comfortable.”
The Korea Development Bank is in a position that it can decide on additional support only by confirming the future viability of Ssangyong Motor. 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.
Chairman Lee said to the Ssangyong Motors union, “(without business value) what number do I live with, and it is difficult for (Ssangyong Motors) to survive alone only with money (new investment).” There is.”
Currently, Ssangyong Motor is in a state of complete capital erosion. Ssangyong Motors revised the results of last year’s accounts on the same day. As debt increased more than the previous announcement (provisional disclosure), Ssangyong Motor’s total capital was -88.1 billion won. The capital erosion rate deteriorated from 100% to 111.8%. It means that even if you sell all of Ssangyong Motor’s assets and turn them into cash, you cannot pay off the debt.
Reporter Yeom Ji-hyun [email protected]
