‘Difficulty’ in Ssangyong’s purchase negotiation In case of failure, court management is inevitable

On the 21st, members of the metallurgical union held a press conference at KDB Industrial Bank in Yeouido, Seoul, urging Ssangyong Motors to support rehabilitation and guarantee workers’ employment. News 1

Ssangyong Motor’s new buyer negotiations, who applied for corporate rehabilitation, are experiencing difficulties.

According to the automobile industry on the 24th, it was reported that the consultative body, including the Korea Development Bank, Ssangyong Motor’s main creditor bank, India Mahindra, and the US automobile retailer HAAH Automotive, which is considered a leading investor, could not conclude a conclusion until the provisional negotiation deadline on the 22nd. .

The council is discussing the sale of Mahindra’s stake in Ssangyong Motor, but it is known that there were disagreements between the two sides at the end of the negotiations. It is estimated that there is a large disagreement over whether Mahindra will remain as a shareholder after handing over the stake. Mahindra, which acquired Ssangyong Motors in 2011, currently owns a 75% stake.

Some observe that the conditions proposed by Saneun to the Ssangyong Motors union are also an obstacle. At a press conference earlier this year, Sangeun Chairman Lee Dong-geol said that if Ssangyong Motor’s union does not accept two conditions, such as prohibition of disputed actions before turning to a surplus and extension of the collective agreement to three years,’one won cannot be applied’. The union side said that it has not committed any industrial action since the declaration of no dispute in 2009, and it is said that it can accept the condition of the strike ban, but it is said to have a negative stance on increasing the deadline for collective agreement from one year to three years.

The consultation body for the sale of Ssangyong Motor is expected to continue until the end of this month. Considering the time required for the sale of shares and capital input, the shareholders’ meeting in March, and the deadline for submitting the audit report last year, the first deadline for negotiations seems to be at the end of this month.

If negotiations fail, Ssangyong Motor is inevitable in court management. After applying for corporate rehabilitation on December 21 of last year, the court accepted Ssangyong Motor’s autonomous restructuring support program and held the decision to commence the rehabilitation procedure until February 28.

On the other hand, it is expected that production will be disrupted if the maturity of bills paid to Ssangyong Motor’s parts suppliers returns on the 29th of this month and the negotiations of the council do not make progress.

Byungwook Cho, reporter [email protected]

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