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On the 21st, Ssangyong Motors decided to request rehabilitation procedures through the board of directors. Furthermore, all the executives, including Chairman Byung-Tae Yee, announced that they would resign.
On the same day, Ssangyong Motor announced that it had received a request for the initiation of rehabilitation proceedings in the Seoul Rehabilitation Court, a request for a company property retention disposition, a comprehensive prohibition order and a request for a decision to suspend rehabilitation procedures.
On the 15th, Ssangyong Motor delayed the loan principal amount of approximately 60 billion won from foreign financial institutions due to deteriorating business conditions.
An official from Ssangyong Motors said: “We have discussed the maturity extension with the relevant financial institution, but if we repay the maturing debts, such as not finding a point of agreement, it is expected to cause a huge disruption in business operation, so that we inevitably request rehabilitation procedures. ” .
Ssangyong Motors announced that it plans to close the current liquidity problem before the rehabilitation process begins by simultaneously accepting a retention request, whether or not the rehabilitation procedure (ARS program) begins.
The ARS program is a system in which the initiation of rehabilitation proceedings is delayed for up to three months after the court confirms the creditors’ intentions. Through the court order for the preservation of corporate property and a comprehensive prohibition order, the company continues with normal business activities and initiates rehabilitation procedures. It is a system that allows the company to return to being a normal company by requesting rehabilitation procedures after reaching an agreement between the interested parties during the pending decision period.
Consequently, Ssangyong Motor will be free from the burden of repayment of loan principals, etc. for the time being, and agreed to adjust its interests with the creditors and main shareholders during the period pending the initiation of the rehabilitation procedure. Plan.
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Mahindra also said that during the ARS period, it will take responsibility as the majority shareholder and actively cooperate in normalizing the management of Ssangyong Motor through early negotiations with stakeholders.
Ssangyong Motor Co., Ltd. said: “We are very sorry that the Ssangyong Motor issue has caused concern to the public, including stakeholders, including business partners, sales networks, financial institutions and employees, in a situation where they suffer from Corona 19 around the world. ” Through the program, all executives will present their resignations and will do everything possible to transform themselves into a more robust and competitive company ”.
