Ssangyong Motor Partner "Edison Motors' Appeal and Injunction, Please Make a Quick Decision" Petition to the Court

[Asia Economy Reporter Choi Dae-yeol] The trade creditors of Ssangyong Motor have appealed to ensure the smooth progress of the Ssangyong Motor resale process. The trade creditors consist of about 340 Ssangyong Motor partner companies.

On the 13th, the trade creditors submitted a petition to the Supreme Court and the Seoul Central District Court requesting an early decision on the lawsuit filed by the Edison Motors consortium against Ssangyong Motor. Earlier, Edison Motors filed a provisional injunction with the Seoul Central District Court demanding the suspension of the effect of the cancellation of the Ssangyong Motor M&A investment contract and a ban on proceeding with the resale process. They also filed a special appeal with the Supreme Court against the decision by the Seoul Bankruptcy Court to exclude the rehabilitation plan.

The creditors stated to the Supreme Court, "We hope that a genuine buyer who can take responsibility for Ssangyong Motor will be selected promptly," and "We request a swift decision on the special appeal so that the rehabilitation plan through resale can be approved within the deadline for the completion of the sacrifice procedure."

They added, "Some say that if the rehabilitation plan is not approved by October 15, liquidation procedures may proceed," and "We are concerned that the resale opportunity for Ssangyong Motor may be thwarted by Edison Motors’ provisional injunction and special appeal."

In the petition submitted to the Seoul Central District Court, the creditors emphasized, "The concerns about Edison Motors’ financial capability ultimately resulted in the cancellation of the investment contract due to non-payment of the acquisition price," and "The partner companies will cooperate and support to ensure that the Ssangyong Motor M&A can proceed promptly." They further requested, "We ask for a prompt decision on the provisional injunction suspending the effect of the cancellation notice of the investment contract filed by the Edison Motors consortium so that the rehabilitation plan through resale can be approved within the deadline for the completion of the Ssangyong Motor rehabilitation procedure."

On the same day, the creditors also submitted a petition to the Korea Exchange requesting a suspension of the delisting review until the resale of Ssangyong Motor is completed. Ssangyong Motor was subject to delisting criteria due to a qualified opinion in the auditor’s report on the 2020 fiscal year financial statements, but was granted an improvement period until the 14th of this month. Ssangyong Motor also received a qualified opinion on the 2021 financial statements this year. The creditors stated, "To prevent the failure of the M&A promotion due to delisting, we request either an additional improvement period or a suspension of the review until the resale of Ssangyong Motor is completed."

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