SsangYong Motor lays foundation for business turnaround with the final authorisation of its proposed rehabilitation
- Successful conclusion of ‘The Assembly of Related Persons’ with overwhelming consent of creditors lays the foundation for the normalisation of the business
- Improved financial position and new capital structure result from implementing the rehabilitation plans including debt clearance and conversion of investments
- Subject to the Court’s agreement, the company will request the completion of the rehabilitation procedures in October after the repayment of the rehabilitation debt
SsangYong Motor Company announces that the Seoul Bankruptcy Court has declared it will grant approval of the company’s rehabilitation following the Assembly of Related Persons and the special inspection date to finalise the rehabilitation proposal. Under this process, the company is now able to drive forward its business turnaround.
At the Assembly of Related Persons, all of the 100% of rehabilitation secured creditors, 95.04% of rehabilitation creditors, and all of the shareholders agreed to the rehabilitation proposal, significantly higher than the requirements for adoption to be sanctioned.
This high level of agreement demonstrates an overwhelming consensus between SsangYong and the relevant parties that early termination of the rehabilitation procedures is the best step for the rights and interests of all involved.
With this overwhelming support of the creditors, the rehabilitation plan was finally approved, and SsangYong completed the important moment of finalising its M&A with KG Group, establishing a secure step in the company’s successful turnaround.
With rehabilitation now authorised, SsangYong Motor will focus on revitalising its business management with an improved finance and capital structure while implementing the rehabilitation plans to repay debt, reduce stock and capitalise on investment.
SsangYong Torres
Commented the receiver, Yong-Won Chung: “SsangYong employees have put their very best efforts into the company by fulfilling the self-rescue plan which includes developing an all new model called Torres. This new car was launched in July this year, and orders already exceed 60,000 units resulting in a greatly reduced operating loss compared with the previous year.”
Through the authorisation of the rehabilitation plan, SsangYong Motor has been able to terminate the 20 month rehabilitation procedures agreed in December 2020.
Added Yong-Won Chung, “I would like to express my sincere gratitude to all those who have supported SsangYong during this difficult time.
“By helping to progress the rehabilitation plans, we will now strive to reinvent the business, and by being competitive in the long-term will be able to repay the loyal support of creditors, customers and other interested parties.”
Chairman of KG Group, Jae-Sun Kwak said: “I am very pleased that the rehabilitation plan has been authorised. With the close cooperation between KG Group and SsangYong, I will fully support SsangYong Motor to re-establish the trust of all parties including customers, and to help normalise the business as quickly as possible.
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Anicecommunication – Press Office SsangYong Italia
