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Ssangyong Motor “will solve the liquidity crisis during the waiting period”
When Ssangyong Motors filed for corporate rehabilitation in court on the 21st, interest in the future proceeding is attracting.
Ssangyong Motor filed for corporate rehabilitation proceedings with the Seoul Rehabilitation Court after serving on the board of directors.
The Seoul Rehabilitation Court issued a provision to preserve company property and a comprehensive ban.
In general, when requesting legal management, companies submit a request for retention of company property.
Until rehabilitation occurs, the creditors petition the court for a provision preventing them from confiscating or selling Ssangyong’s assets.
The court decides on a conservative provision after considering whether the company requesting receivership is a public interest company and whether there is a possibility of an acquisition by a third party.
Once the property preservation measures are taken, there is no need to pay off all existing debts except wages, taxes, water bills, and phone bills.
A comprehensive court order is a measure to freeze all claims until the court decides to begin the administration of the court.
Ssangyong Motor’s request for the rehabilitation procedures has led to these measures, but it remains to be seen whether the rehabilitation process will actually begin when the application of the Autonomous Restructuring Support Program (ARS) is requested.
The ARS program is a system in which the court’s decision to initiate rehabilitation procedures is delayed up to three months, and during this period, through a restructuring agreement between creditors and debtors, the request for rehabilitation procedures is withdrawn and the company you can go back to a normal company.
Ssangyong Motor submitted a joint application for the ARS program and showed its willingness to resolve the liquidity problem until the rehabilitation process began.
During the waiting period for the start of the procedure, it will focus on adjusting the interests of creditors and large shareholders, freeing itself from the obligation to pay debts.
Ssangyong Motor plans to reach an agreement on restructuring during the waiting period for the start of the rehabilitation process and finalize new investment negotiations with the US HAAH Automotive, which is currently underway, and request the court to withdraw the procedure. rehabilitation.
However, if the restructuring proposal is not agreed within three months, the court quickly decides whether to initiate the rehabilitation procedure and proceeds with the follow-up procedure.
When the decision is made to initiate the rehabilitation procedure, the court appoints a manager and an investigator from Ssangyong Motor.
The rights of shareholders, including Mahindra, the largest shareholder, cannot be exercised.
The investigators assess Ssangyong Motor’s financial condition, including debts, and the possibility of rehabilitation, and publish their opinions on whether it would be better to save the company.
If the investigator determines that there is no possibility of Ssangyong Motor rehabilitation in the report, and the court recognizes its validity, the Ssangyong Motor rehabilitation procedures can be immediately abolished.
On the contrary, if the creditors feel that they can continue the rehabilitation process based on the investigator’s report, the court orders the administrator to present a rehabilitation plan.
Consequently, a rehabilitation plan is created, and if the court finds that there are no legal problems with the plan itself, the full-scale rehabilitation procedure begins as planned.
The rehabilitation plan contains debt adjustments, debt compliance plans, future corporate management directions, and the time needed for rehabilitation, and Ssangyong Motor managers are monitored by reporting the plan’s execution status to the court of Occasionally.
When the rehabilitation process begins, Ssangyong Motor will pay off its debts through mergers and acquisitions and asset sales as planned.
/ yunhap news
