The ongoing battle to secure the future of SsangYong has been given a boost with the news that the Seoul Bankruptcy Court will approve the company’s survival and takeover plan.
Following the Assembly of Related Persons — a meeting with all stakeholders and investors — and a special inspection to finalise the rehabilitation proposal, the company can now drive forward its business turnaround.
At the Assembly of Related Persons, every single secured creditor and more than 95% of unsecured creditors, as well as the shareholders, agreed to the rehabilitation proposal. The positive response was far higher than required for the plan to be approved.
This high level of agreement demonstrates an overwhelming consensus between SsangYong and the relevant parties that ending the procedure quickly is the best step for all involved.
With the approval of the rehabilitation plan, SsangYong finalised its takeover agreement with KG Group
, establishing a secure step in the company’s successful turnaround. With rehabilitation now authorised by the Korean authorities, SsangYong will focus on revitalising its business management with an improved finance and capital structure while implementing plans to repay debt, reduce stock and capitalise on investment.
“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,” said Yong-Won Chung, the official receiver. “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, added: “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.”
Through the authorisation of the rescue plan, SsangYong has been able to terminate the 20-month rehabilitation procedures and restrictions in place since December 2020.
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