Byung-tae Yee (left), CEO of Ssangyong Motors and Il-kwon Jeong (second from left), chairman of the Ssangyong Motors union. On the 5th, the Ssangyong Motors union appealed to the government and creditors to “Give me another chance.” [연합뉴스]
Following the Ssangyong Motor Company, the union also appealed to the government and creditors for another opportunity.
Ssangyong Motors’ union chairman Jung Il-kwon said in a statement on the 5th, “I am sorry for the management crisis of Ssangyong Motors.” ) We will repay the development of vehicles loved by the people like Tivoli, which opened the era.” He added, “For the protection of key industries, the government and creditors hope that there will be practical solutions, such as funding for Ssangyong Motor and its suppliers.”
On the 21st of last month, Ssangyong Motor went into self-structuring (ARS) with an application for corporate rehabilitation procedures. However, as the negotiations between Mahindra & Mahindra, India’s major shareholder, and HAAH Automotive Holdings in the United States broke down, ARS actually went over water. Since then, it is preparing to enter the P plan (pre-rehabilitation plan), which is a rapid rehabilitation procedure, but the Korea Development Bank, which held the decisive key, showed a negative opinion and fell into a dilemma. It is interpreted that the Ssangyong Motor Union’s appeal to the government and creditors was aimed at this.
Ssangyong Motor’s union held on to its previous position on’entering the rehabilitation procedure that guaranteed total employment’. A union official said, “The reason I did not object to ARS was to maintain the total employment policy through uninterrupted sale negotiations.” “If the P plan proceeds, it is given so that new investors can make decisions as soon as possible based on stable labor-management relations. I will fulfill my responsibilities and roles.” Ssangyong Motor’s workers are receiving only 50% of their salary starting this month.
Earlier, on the 12th of last month, Lee Dong-geol, chairman of the Industrial Bank of Korea, asked the union to promise no dispute until the normalization of management and to change the term of negotiations from one year to three years. This is a prerequisite for Saneun’s support for Ssangyong Motor. However, there was no answer to this from the position of the union. An official from Ssangyong Motor replied, “The contents will be included in our own plans in the future.”
Prior to the labor union, Ssangyong Motor announced on the 4th that it will proceed with the P plan without a hitch to lay the foundation for early management normalization. An official from Ssangyong Motor said, “Ahead of the P plan, we are discussing related procedures with Mahindra and other potential investors. As soon as the consultation is completed, we will prepare a preliminary rehabilitation plan and proceed with the creditor agreement process.”
For the P plan, which requires half of the creditors’ agreement, the decision of Korea Development Bank, a major creditor, is important. However, on the 2nd, the Korea Development Bank said, “Under the current situation where the potential investor (HAAH Automotive) has not made a decision, it is not possible to determine whether or not the KDB will provide financial support.”
Reporter Kim Young-joo [email protected]