The key to whether to support HAAH investment or KDB
Ssangyong Motor is expected to pay only 50% of employee wages this month as negotiations for the sale with HAAH Automotive, a leading investor, are delayed and the initiation of the short-term court management (P plan) is struggling.
According to the industry on the 20th, Ssangyong’s labor and management are discussing a plan to pay only 50% of employee wages in March and April.
Ssangyong Motor, which is experiencing a liquidity crisis, suspended payment of 50% of employee wages in January and February as well.
Ssangyong Motor recently passed the first step for entering the P plan with the approval of the Central Bank of India (RBI) to reduce its stake in Mahindra, India, but the final investment decision of HAAH Automotive was delayed, and the Korea Development Bank “strengthened bones” as a condition It demands’cutting efforts’ and is in fact in a life-and-death period.
Ssangyong Motors initially requested that HAAH Automotive decide whether to invest or not, but it is reported that HAAH Automotive has delayed the response deadline for about a week, saying that it takes more time to review data and persuade investors.
It is known that even inside Ssangyong Motors, it is not possible to determine whether the actual sale will be successful.
There is also a possibility that the investment decision of HAAH Automotive will exceed this month.
It is reported that HAAH Automotive is struggling with Ssangyong Motor’s business continuity and public interest bonds worth 370 billion won.
The scale of public interest bonds exceeds the investment promised by HAAH Automotive of 250 million dollars (about 280 billion won).
For this reason, some say that HAAH Automotive is having difficulty convincing financial investors (FIs) in the Middle East and strategic investors (SI) in Canada, which are the’finance lines’.
It is for this reason that they are asking for similar-sized support from Saneun.
However, it is known that HAAH Automotive’s willingness to take over is still strong.
Ssangyong Motor’s president Ye Byung-tae said, “HAAH Automotive highly evaluates the quality of Ssangyong’s finished vehicle assembly, and expects a turnaround after entering North America in the future.”
Inside HAAH Automotive, it is known that Ssangyong Motor is also considering a plan to take over after reducing the size of its debt through the court’s corporate rehabilitation procedure.
Earlier, India’s Mahindra also started to take over Ssangyong Motor, which is under court management at the end of 2010.
Ssangyong Motor graduated from court management in 2011.
Regarding this, an industry official said, “Since general court management takes 1 to 2 years, there is no time to wait for it from the standpoint of HAAH Automotive.” There is room to do,” he said.
In the end, in order to obtain investment decisions from HAAH Automotive and support from the Bank, Ssangyong Motor’s labor cost reduction and high-cost structure resolution are expected to become variables.
Earlier, Chairman Lee Dong-geol said at a conference on the 15th that “Ssangyong-cha’s labor and management still seem to be comfortable in my opinion,” and on the 17th, in a meeting with President Yee and the union chairman Jung Il-kwon, “Ssangyong-cha was’immediately living. “If you want to die, you will live if you want to die), put everything down, preemptively suggest the best way to attract investment,” he asked.
The Bank of Korea is in a position to review the financial support for Ssangyong Motor after confirming the investment decision and financing capability of HAAH Automotive and verifying the objective validity of the business plan.
However, it is known that the Ssangyong Motors union is strongly opposed to human restructuring.
Chairman Jeong Il-kwon said at the union meeting, “If the sale is unsuccessful or if the request for a reassurance plan for forcefully cutting bones becomes a condition, we will develop a struggle.”
Ssangyong Motor was laid off in the aftermath of a corporate rehabilitation application in 2009, and the so-called’Ssangyong Motor Incident’ triggered here left a big scar on Korean society, and in 2018 all the layoffs were finally closed by reinstatement.
/yunhap news