Court Decides to Exclude Ssangyong Motor Rehabilitation Plan

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Hyun-seok] The court has excluded the rehabilitation plan submitted by Ssangyong Motor and decided to cancel the creditors' meeting.

On the 29th, Ssangyong Motor announced that the Seoul Rehabilitation Court excluded the rehabilitation plan submitted on the 25th of last month and canceled the creditors' meeting scheduled for the 1st of next month. This is a follow-up measure after terminating the merger and acquisition (M&A) investment contract with the Edison Motors consortium.

Previously, the investigation committee confirmed that the Edison Motors consortium failed to pay the remaining balance of the acquisition price. Additionally, the committee submitted an investigation report to the court the day before stating that the previously submitted rehabilitation plan, which included provisions to repay existing rehabilitation claims with the acquisition funds from Edison Motors by next month, was not feasible.

The court plans to notify creditors and shareholders of the cancellation of the creditors' meeting scheduled for the 1st of next month, which was to review and resolve the rehabilitation plan. The submission period for the rehabilitation plan has been extended to May 1st.

Ssangyong Motor plans to promptly conclude the response to Edison Motors' application for a provisional injunction to suspend the effect of contract termination through litigation.

Ssangyong Motor stated, "Edison Motors' claim cannot justify the non-payment of the remaining acquisition price," and added, "Since the responsibility for contract termination clearly lies with Edison Motors, we will clarify this through litigation."

Ssangyong Motor said, "Due to Edison Motors' failure to pay the remaining acquisition price, the M&A investment contract has been terminated, and the rehabilitation plan has been excluded by the court. Therefore, we plan to proceed with the sale process again and promote a competitive M&A."

Due to Edison Motors' failure to pay the remaining acquisition price, Ssangyong Motor plans to proceed with the sale process again and promote a competitive M&A as the M&A investment contract has been terminated and the rehabilitation plan excluded by the court.

Ssangyong Motor explained, "We believe there will be competitive acquisition candidates as the uncertainty over major management issues has been largely removed, improving corporate value," and added, "We plan to comply with the rehabilitation plan approval deadline by mid-October through a swift M&A process."

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