Court Extends Deadline by 2 Months for Ssangyong Motor's Rehabilitation Plan Submission Amid Pre-Approval M&A Efforts

Ssangyong Motor Pyeongtaek Plant Photo by Yonhap News

[Asia Economy Reporter Kim Daehyun] The court has extended the deadline for submitting the rehabilitation plan of Ssangyong Motor, which is undergoing corporate rehabilitation procedures, by two months.

On the 30th, the Seoul Rehabilitation Court's Rehabilitation Division 1 (Presiding Judges Seo Kyunghwan, Jeon Daegyu, Kim Changkwon) announced that the deadline for Ssangyong Motor to submit its rehabilitation plan has been changed to September 1. Initially, the court had decided to commence rehabilitation procedures for Ssangyong Motor in April and required the submission of the rehabilitation plan by May 1, but it accepted Ssangyong Motor's request to extend the deadline by two months.

Ssangyong Motor is pursuing M&A before the approval of the rehabilitation plan. It has already explained to the labor union the plan to select a preferred negotiation partner by the end of September and conduct price negotiations by the end of October. Pre-approval M&A refers to proceeding with M&A before the court approves the rehabilitation plan, signing an investment contract, and preparing the rehabilitation plan based on this.

If Ssangyong Motor's sale plan proceeds as scheduled, the submission of the rehabilitation plan is expected to be after the price negotiations conclude at the end of October. Currently, companies that have expressed interest in acquiring the commercial vehicle division include HAAH Automotive, domestic electric bus manufacturer Edison Motors, electric vehicle company K-pop Motors, and private equity firm Park Seokjeon & Company.

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