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SsangYong saved! Korean court gives green light to rescue plan

The Seoul Bankruptcy Court is said to have approved the latest rescue plan for the troubled South Korean automaker. SsangYong – paved the way for some overdue financial stability.

SsangYong currently operates the entire operation of a subsidiary in Australia and sells Musso and Rexton and Korando SUV car. It is also working to launch Sharp Torres SUVs and electric versions of Korando will be smaller by 2023.

The Yonhap The news agency reported that SsangYong’s debt settlement plan – submitted to the Court at the end of July – has now encountered “excessive” support from creditors and other stakeholders.

One Group led by chemical and steel corporation KG Group got the green light to buy a majority stake (reportedly 61%) in the long-debt car maker, however, the company is working on some new and exciting products.

The two companies are related. KG Steel, part of the KG Group, previously supplied components to SsangYong.

Expenses reported, according to The Korea Herald, is 950 billion won (A1.026 billion USD). The Korean market regulator said the deal will not hinder competition in relevant markets, including cold-rolled sheet steel and auto manufacturing.

That price is more than three times higher than the 304.8 billion won that South Korean electric bus maker Edison Motors has agreed to pay SsangYong, before its deal is supported.

SsangYong Motor has been in court since April 2021 when parent company Mahindra & Mahindra failed to find new investors amid the pandemic and financial difficulties.

Yonhap SsangYong reports SsangYong could exit a court-led debt relief program this year – if all planned debt payments are completed on schedule. Debts that are not paid in cash will be converted to equity.

Court-appointed manager for SsangYong Motor Chung Yong-won stated, “We will do our best to repay our creditors, stakeholders and customers who have trusted us by turning the business around. company to become a sustainable company.”

KG Chemical CEO Kwak Jae-sun added, “It is with great pleasure that the court has approved the restoration plan and I sincerely appreciate all of the SsangYong employees who have given their best throughout the process. .

“KG will fully support SsangYong to normalize business operations and regain confidence in the market.”

SsangYong’s family life has been difficult for many years, and it never seems to have long-term stable parents.

Daewoo bought a controlling stake in the company in 1997, only to reduce it in 2000 as the company experienced dangerous financial woes of its own.

It has experienced a tumultuous few years under Chinese ownership, with SAIC Motor acquiring 51% in 2004 but leaving in 2009 and leaving it in receivership.

Mahindra & Mahindra is the next parent company through SsangYong, acquiring a 70% controlling stake for 523 billion won in 2011.

THAN: SsangYong, the history of a brand with an uncertain future
THAN: SsangYong Torres SUV successful at home, Australian launch pushed back
THAN: SsangYong may be acquired by Korean steel company – report
THAN: SsangYong attracts four bidders after acquisition deal collapses – report
THAN: SsangYong, the history of a brand with an uncertain future
THAN: Edison Motors asks the court to save the acquisition of SsangYong – report
THAN: SsangYong petitioner gets court approval for purchase – report

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