Ssyangyongcha Rehabilitation Plan Approval Period Delayed by 6 Months... Until October 15

Front gate of Ssangyong Motor Pyeongtaek Plant, Pyeongtaek-si, Gyeonggi-do

[Asia Economy Reporter Choi Dae-yeol] Ssangyong Motor announced on the 8th that "the approval period for the rehabilitation plan has been extended until October 15, 2022."

The company's corporate rehabilitation process began on April 15 of last year. Initially, the approval had to be decided within one year, but the Seoul Bankruptcy Court recognized unavoidable reasons and extended the deadline by six months.

Earlier, Ssangyong Motor terminated the merger and acquisition (M&A) investment contract after Edison Motors Consortium failed to pay the remaining acquisition amount of 274.3 billion KRW by the payment deadline on the 25th of last month. The rehabilitation plan, which included the repayment plan based on Edison Motors' acquisition funds, was also excluded by the court due to the contract termination.

Ssangyong Motor is currently pursuing a resale. KG Group and Ssangbangwool Group have expressed their intention to acquire to EY Hanyoung Accounting Corporation, the lead sales agent for Ssangyong Motor. Although Ssangbangwool Group has not yet finalized the sales method, it submitted a letter of intent to EY Hanyoung in advance on the same day. Ssangyong Motor must find a buyer, sign an investment contract, and obtain court approval for a new rehabilitation plan by the set deadline of October 15.

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