San-eun Conveys Opinion on Whether to Commence Ssangyong Motor Rehabilitation Proceedings... "The Key Lies with the Court"

Ssangyong Motor, P-Plan Delayed Due to HAAH Automotive's Investment Decision Postponement
KDB to Submit Opinion Letter Today on Whether to Initiate Ssangyong Motor's Rehabilitation Proceedings

[Image source=Yonhap News]

[Asia Economy Reporter Park Sun-mi] SsangYong Motor has become further distanced from the P-Plan (Pre-Packaged Rehabilitation Plan) due to the delay in investment decisions by the major investor HAAH Automotive. Although KDB Industrial Bank will send a response letter regarding the commencement of SsangYong Motor's rehabilitation proceedings to the court on the 6th, the response letter is essentially for reference only, and the decision to initiate rehabilitation proceedings rests entirely with the court.

According to financial sources, the Seoul Bankruptcy Court sent an inquiry letter to SsangYong Motor's creditors on the 1st of this month, asking whether to commence rehabilitation proceedings for SsangYong Motor. The main creditor bank, KDB Industrial Bank, is expected to collect the creditors' opinions and deliver the contents to the court by the afternoon of the same day.

A KDB Industrial Bank official stated, "KDB will gather the creditors' opinions and submit a response letter to the court regarding the commencement of SsangYong Motor's rehabilitation proceedings, but the key to deciding whether to commence lies with the court. Typically, this is a procedure to ask for the creditors' opinions for reference, and KDB's consent or dissent does not significantly influence the decision."

Within the industry, since HAAH Automotive did not submit a letter of intent to invest by the court's requested deadline of March 31, it is considered inevitable that rehabilitation proceedings will commence for the time being. Earlier, Financial Services Commission Chairman Eun Sung-soo also mentioned that he was aware HAAH Automotive requested more time, but added, "We cannot keep delaying, so if no opinion is received, it should be regarded as no intention to invest," signaling preparations for the next steps.

The court's decision on whether to commence rehabilitation proceedings for SsangYong Motor is expected to come around April 8 to 10, after the April 7 by-elections. Once rehabilitation proceedings begin, SsangYong Motor is expected to start downsizing through restructuring and debt relief. The likely plan is to significantly reduce its size and then sell to new investors. Industry sources report that currently 3 to 4 companies, including domestic firms, have expressed interest in acquiring SsangYong Motor after court management.

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