Edison Consortium "No Issues with Funding for Ssangyong Motor Acquisition"

[Asia Economy Reporter Yoo Hyun-seok] Edison Motors announced on the 28th that there are no issues with securing funds for the acquisition of Ssangyong Motor.

Edison Motors plans to raise over 100 billion KRW through U&I, an affiliated company recently acquired, along with funds raised last year through Edison EV. Additionally, since the parent company Energy Solutions is in discussions regarding the securitization of financial assets and with financial investors (FIs), they maintain that there are no problems with funding.

A company official explained, "Including investment commitments from other overseas financial institutions and FIs, a total fund raising of over 300 billion KRW is being thoroughly prepared without any setbacks."

Edison Motors is currently in the process of applying for a postponement of the creditors' meeting and procedures to change the acquisition consortium. If court approval is granted, these funds will be immediately injected as acquisition capital.

Edison emphasizes that the reason for requesting the postponement of the meeting is due to the uncooperative attitude of the management group. Last month, Edison Motors urgently provided 30 billion KRW to Ssangyong Motor for technology development and investment, even though the acquisition had not yet been finalized and they only held the status of preferred negotiator.

Although it was agreed that the use of funds would be limited to matters necessary for Ssangyong Motor’s operations and that expenditures would be made only after consultation with Edison Motors, there was not a single consultation. A company official stated, "The management group’s decision to pay the manager’s performance bonus up to the legal maximum limit using the emergency funds provided by Edison Motors for the normal operation of Ssangyong Motor is absolutely unacceptable behavior."

Therefore, Edison requested the postponement of the creditors' meeting, judging that it would be meaningless to pay the remaining acquisition funds without reaching broad consensus with creditors, labor unions, and related organizations.

An Edison Motors official said, "It appears that over 2 trillion KRW in funds will be required for the acquisition and normalization of Ssangyong Motor. This is not something Edison Motors can achieve alone; all employees including the labor union, local governments, related organizations, and even the new government must cooperate with one mind for the revival of Ssangyong Motor."

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