Ssangyong Motor Pyeongtaek Plant. Picture ssangyong car
Ssangyong Motor announced on the 29th that it recorded sales of KRW 2.95 trillion and operating loss of KRW 4235 billion last year. Compared to 2019, sales declined 18.6%, and the deficit widened. Ssangyong Motor said, “The range of deficits increased as production was disrupted due to a decrease in exports and supply and demand of parts due to the aftermath of the novel coronavirus infection (Corona 19). This year, we launched a variety of new cars through securing new investors and seek overseas markets I will do it.”
On this day, the Korea Exchange disclosed the contents of’concerns about delisting, investment caution’ on Ssangyong Motor. The Korea Exchange said, “Ssangyong Motors has completely eroded the capital as of the end of the latest business year (December 2020).” It can correspond to “he said.
Earlier last month, Ssangyong Motor sought to attract new investors through autonomous restructuring (ARS) along with the application for corporate rehabilitation procedures, but it is still in a hurry. According to industry sources, negotiations on the sale of shares between Mahindra, India’s largest shareholder of Ssangyong Motor and HAAH Automotive, a major investor of US auto retailer, were unable to narrow the gap, such as the amount of the acquisition, which broke down recently.
Accordingly, Ssangyong Motor is discussing the P plan (pre-planned rehabilitation plan) with creditors such as HAAH Automotive and Korea Development Bank. The P plan is a method in which the creditors go through quick rehabilitation procedures with the consent of the court. Ssangyong Motor is pursuing a preliminary rehabilitation plan by lowering or eliminating its stake in Mahindra (75%) through potato and raising it to the largest shareholder (51%) through a capital increase of USD 250 million (about 270 billion won) by HAAH Automotive. . According to industry sources, Ssangyong Motor plans to submit a rehabilitation plan to the Seoul Rehabilitation Court next week after completing coordination with HAAH Automo on such a plan.
Reporter Kim Young-joo [email protected]