▲ The court ruled to exclude Ssangyong Motor’s rehabilitation plan. ⓒSsangyong Motor
The court ruled that Ssangyong Motor’s proposed rehabilitation plan was excluded.
The Seoul Rehabilitation Court announced on the 29th that it had ruled out the rehabilitation plan submitted by Ssangyong Motor on the 25th of last month and canceled the meeting of related persons scheduled for the 1st of next month.
The investigator confirmed that the balance of the purchase price of the Edison Motors consortium had not been paid, and submitted an investigation report to the court on the 28th stating that the previously submitted rehabilitation plan was not likely to be implemented. Accordingly, the court notified creditors and shareholders of the cancellation of the meeting of related persons for the hearing and resolution of the rehabilitation plan, scheduled to be held on the 1st of next month.
Ssangyong Motors plans to resume the sale procedure as the M&A investment contract is canceled due to Edison Motors’ non-payment of the balance of the acquisition price and the rehabilitation plan is excluded by the court.
An official from Ssangyong Motor said, “We believe that there will be competitive candidates for acquisitions as the corporate value improves, such as removing much of the opacity on major management issues. I will comply,” he said.
Meanwhile, Edison Motors filed an injunction requesting the suspension of the cancellation of the Ssangyong M&A investment contract with the Seoul Central District Court on the same day. Edison Motors has requested that Ssangyong be banned from withdrawing the 30.5 billion won it paid as a down payment to SsangYong Motors.
In response, Ssangyong Motor plans to respond with a response. Ssangyong Motor is in the position to clarify this through litigation, as the reason for the cancellation of the contract is clearly attributable to Edison Motors.
