Ssangyong Motor's 'Voluntary Restructuring' Underway... Court Delays Rehabilitation Proceedings for 2 Months

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] Ssangyong Motor's 'Voluntary Restructuring Support' (ARS) program, applied together with corporate rehabilitation procedures (court receivership), has been accepted by the court. Accordingly, the commencement of rehabilitation procedures for Ssangyong Motor will be postponed for two months until February 28 next year.

According to the legal community on the 28th, the Seoul Rehabilitation Court's Rehabilitation Division 1 decided to accept Ssangyong Motor's ARS program application submitted along with the corporate rehabilitation petition. The ARS program is a system where the court confirms the creditors' intentions and can postpone the start of court receivership for up to three months. Accordingly, the court decided to postpone the decision on whether to commence rehabilitation procedures until February 28 next year.

If Ssangyong Motor attracts investors and finalizes an agreement with creditors during the postponement period, the rehabilitation application can be withdrawn as if it never existed. On the other hand, if no agreement is reached, the rehabilitation procedures will proceed again.

Ssangyong Motor previously applied for the commencement of rehabilitation procedures on the 21st. This court receivership application is the first in about 11 years since the company filed for corporate rehabilitation in January 2009.

This content was produced with the assistance of AI translation services.