Sang-Hyun Choi, senior vice president of Saneun, said at an online press conference that day, “potential investors (HAAH Automotive) left the country without making a final decision on the P plan as Ssangyong Motor’s data submission was delayed after mid-January.”
Ahn Young-gyu, head of the corporate finance division, added, “We know that potential investors have not been able to decide whether to proceed with the P plan as Ssangyong Motor’s specific rehabilitation plan has not been prepared,” he added. “There is no schedule for the future.”
Sang-Hyeon Choi, Senior Vice-President▶ Click here to enlarge
It was confirmed as a fact that HAAH Automotive requested a large amount of support from KDB.
“It is true that potential investors requested support corresponding to the amount of investment in front of the creditors,” said Ahn. “It is difficult for creditors to evaluate the business plan without submitting a specific business plan. If Ssangyong Motor’s sustainable rehabilitation plan is prepared, it is true.” After evaluating this, it will be possible to decide whether to provide financial support.”
In the P plan, the majority shareholder Mahindra’s stake (currently 75%) was lowered through potatoes, and HAAH Automotive participated in a capital increase of 250 million dollars (about 280 billion won) to become the largest shareholder (51%). It is known to be.
Vice-Chief Choi also said, “The P plan is based on the investment of potential investors, and in the current situation, it is not a step to determine whether the KDB will provide financial support.” After confirming the feasibility, it is expected that it will be possible to decide whether to agree to the P plan.”
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.”
Young-gyu Ahn Head of Corporate Finance Division, Saneun▶ Click here to enlarge
Ahn also said, “The creditors have requested proof of financing from potential investors, but have not presented it so far,” he said. “It is judged that the current LOC (investment confirmation letter) is not ready. If a rehabilitation plan is prepared in consultation with Ssangyong Motor, Based on this, we know that we plan to obtain LOC from LP (liquidity provider).”
He said about the two conditions (prohibition of industrial action before turning into surplus and increase the expiration date of collective agreement from one year to three years) that Sang-eun Chairman Lee Dong-geul asked for the Ssangyong Motors union, “the situation has not yet been discussed in detail with Ssangyong Motor’s labor and management” .
When asked that Ssangyong Motor’s bankruptcy could lead to a liability theory that KDB did not support early, “We believe that the cause of Ssangyong’s insolvency is due to the management failure of its major shareholder (Mahindra, India). Why is the KDB’s responsibility? I want to,” he answered.
“When the P plan proceeds, Mahindra is expected to make decisions based on their interests as the major shareholder and creditor of Ssangyong Motor.”
When asked that he approached the Ssangyong Motor issue in a different way from GM Korea’s support in the past, he said, “GM Korea is the second largest shareholder as it secures a sustainable business plan such as receiving $6.4 billion in support from the US GM headquarters and allocating new vehicles. The bank also provided 750 million dollars.”
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