[Car Story] Ssangyong Motor's Delay in Selecting Preferred Negotiation Partner Frustrates Suppliers

Court Requests Supplementation of Documents for Two Main Bids... Submission Deadline on the 15th of This Month

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] As the selection of the preferred bidder for finding a new owner of Ssangyong Motor is delayed, the concerns of partner companies are deepening.

According to industry and legal sources on the 11th, the Seoul Rehabilitation Court plans to receive supplementary documents related to the bids from the preferred bidders by the 15th of this month. Earlier, the court had requested the submission of additional documents by the 30th of last month, citing insufficient bid documents such as post-acquisition management plans and proof of funds.

However, judging that the supplementary documents submitted by these companies are still insufficient, the court postponed again, instructing them to supplement the proof of acquisition funds by the 15th of this month.

Three companies participated in the main bid for Ssangyong Motor: LBNT, Edison Motors consortium, and IndiEV. It is known that LBNT, Edison Motors consortium, and IndiEV each offered bids in the low 500 billion KRW range, high 200 billion KRW range, and high 100 billion KRW range, respectively, during the main bidding.

While it is reported in the industry that IndiEV, which submitted the lowest amount, has withdrawn from the bid, IndiEV has stated that the reports claiming they have withdrawn are "not true."

The companies participating in the main bid have not indicated any intention to give up on acquiring Ssangyong Motor, but partner companies are worried that the delay in selecting the preferred bidder could lead to the failure of the main bid and consequently delay the rehabilitation process.

This is because Ssangyong Motor’s deficit and the prolonged global semiconductor supply shortage have rapidly worsened the financial difficulties of partner companies due to decreased vehicle sales.

Last month, Park Ju-bong, the Small and Medium Business Ombudsman (vice-ministerial level), urgently proposed support for Ssangyong Motor’s partner companies to the Ministry of Trade, Industry and Energy, the Financial Services Commission, and the Ministry of SMEs and Startups.

At the time, Ombudsman Park pointed out, "It is urgent to prepare additional support measures such as the government’s special guarantee program," and added, "It is also necessary to consider the impact on the livelihoods of the 165,000 employees of about 340 partner companies and their families, as well as the regional economy."

A representative of the trade creditors also expressed concern about the delay in selecting the preferred bidder for Ssangyong Motor but said, "We hope the sale process proceeds smoothly."

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