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India’s Mahindra Group, the largest shareholder of Ssangyong Motors, has fallen out of negotiations for the sale of Ssangyong Motors. US automobile retailer HAAH Automotive plans to continue negotiations with Ssangyong Motor and domestic creditors based on Ssangyong Motor’s legal management (company rehabilitation procedure).
According to the industry on the 25th, Mahindra and HAAH stopped negotiating the sale of Ssangyong Motors. It was reported that the two companies were unable to narrow the disagreement over terms of trading. An industry insider explained, “In a word, Mahindra,’I’ll take my hands off it, take care of it’. It is highly likely that it will not return to the negotiation table.”
HAAH remains willing to take over. However, it wants Ssangyong Motor’s legal management. When court management begins, it is interpreted as a move taking into account that the acquisition becomes easier due to debt adjustment and reduction. Ssangyong Motor applied for legal management in December last year due to the liquidity crisis. The decision to commence court management has been pending until the end of next month as the court has decided to apply an autonomous restructuring assistance (ARS) program.
If Ssangyong Motors enters court management as HAAH wants, the restructuring of manpower is inevitable. This is the background that Ssangyong Motor is hesitant to start legal management.
Ssangyong Motor is driven to the edge of a cliff. Ssangyong Motor has decided to suspend payment of 50% of employee wages this month and next month. Ssangyong Motor’s president Ye Byung-tae said on the bulletin board that day, “I have a heavy heart and no face for being driven into the worst situation.”
Although some officials have broken the official negotiations, they are observing that there is a possibility that negotiations such as coordination under water may continue.
Reporter Kim Il-gyu/Nam Jung-min [email protected]
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