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Photo: YONHAP News
On the 21st, Ssangyong Motors applied for rehabilitation proceedings before the Seoul Administrative Court.
The Rehabilitation Division 1 of the Seoul Rehabilitation Court (Presiding Judge Kyung-Hwan Seo, Chief Judge Jeon Dae-gyu) decided to open a closed date for Ssangyong Motor’s request for rehabilitation in Interrogation Room 303, Annex 3 from the Seoul General Court Building at 2 p.m. on the 23rd.
When Ssangyong Motors requested rehabilitation proceedings with the court, it filed a comprehensive injunction request and a request for preservation of company property, and the court accepted it and issued a comprehensive injunction and preservation at 5pm on the 21st. .
If a comprehensive court order is issued, the enforcement, seizure, provisional disposition and auction proceedings of the company’s property are stopped.
However, the Ministry of Justice allowed to continue with the “payment of commercial bonds for continuous and normal commercial activities. The court explained that it is to minimize the anxiety of Ssangyong Motor’s business partners and ensure stable business activities.
Ssangyong Motor also requested a decision to withhold the start of the rehabilitation proceedings, the so-called ‘autonomous restructuring support program (ARS)’, which means that if the court delays the decision to start the rehabilitation, it will consult autonomously with the creditor.
When the ARS program is ongoing, companies can autonomously conduct restructuring consultations with major creditors while normal operations continue, and when negotiations take place, the rehabilitation request itself can be withdrawn.
If the consultation is missed, rapid rehabilitation procedures can be performed by preparing an advance plan. The start of rehabilitation procedures can be suspended for up to 3 months.
Ssangyong Motor reportedly requested the rehabilitation procedures because it was unable to repay loans taken from foreign financial institutions and the Korea Development Bank. As of September 30, Ssangyong Motor’s assets amounted to KRW 1.69 trillion and its debt was KRW 1.589.3 trillion.
Ssangyong Motor has ▲ deterioration of domestic sales performance due to intensifying competition in the SUV market, ▲ deterioration of export performance due to a de facto suspension of exports since 2015, ▲ shortage of new car sales and an increase in marketing costs, ▲ a general slowdown in the automobile market due to the spread of Corona 19 cited as the reason for requesting rehabilitation procedures.
At the same time, he mentioned that about 600,000 workers and their families working in Ssangyong Motors companies have the right to live, prevent the regional economic recession in Pyeongtaek city and avoid the president of accumulated experience and technology in the automotive industry like the need for rehabilitation.
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