According to industry sources on the 28th, Ssangyong Motor President Ye Byung-tae revealed the plan of the P plan through a meeting with the Emergency Response Committee of Ssangyong Motor’s partner companies.
President Yee said, “It’s unfortunate, but Mahindra’s stubbornness caused the negotiations to break down, so I started the P plan.” .
The P plan is a restructuring method in which creditors inject new funds when the court quickly reduces the existing debt.
The debtor submits a preliminary rehabilitation plan before the commencement of the rehabilitation procedure and obtains approval through a court hearing and resolution accordingly.
The P plan, which is forced to go through court management for an ultra-short term after submitting the preliminary plan to the court, can shorten the time it takes for rehabilitation than the usual procedure.
Ssangyong Motor’s side explained that the goal is to finish the P plan by the end of April at the meeting.
In order for Ssangyong Motors to enter the P plan, it is necessary to agree with a business partner, a creditor for commerce.
The Ssangyong Motor Association, which is made up of 350 small and medium-sized parts suppliers, estimates that the delivery cost, which has not been received since October last year, is over 500 billion won.
According to an official from the non-subcommittee of suppliers, Ssangyong Motor will default on bills due on the 29th and pay half of the bills delivered in December and January in cash.
It is reported that Ssangyong Motor’s partners have accepted this and decided not to stop delivery.
Meanwhile, Ssangyong Motor’s liquidity funds are exhausted as some parts makers refused to deliver after applying for corporate rehabilitation last month, and demanded cash payments instead of bills as a condition to resume delivery.
Ssangyong Motor has suspended payment of an amount equivalent to 50% of employees’ wages in January and February in order to pay for materials.
Ssangyong Motor Manufacturing Plant. Photos are not related to the specific facts of the article. [사진=쌍용차 제공]
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