Saneun mentions the possibility of the Ssangyong Motor’s P plan collapse… Financial support is also difficult

-Korea Development Bank announced on the 2nd that it could not decide on financial support without potential investors for Ssangyong Motor.

Sang-Hyun Choi, senior vice president of Saneun, said at an online press conference that day, “potential investors (HAAH Automotive) left the country without making a final decision on the P plan as Ssangyong Motor’s data submission was delayed after mid-January.”

Next, Ahn Young-gyu, head of the corporate finance division, added, “We know that potential investors have not been able to decide whether to proceed with the P plan due to the lack of a detailed rehabilitation plan for Ssangyong Motor.” “There is no schedule for the future.”

This means that it is difficult to provide funding anymore in a situation where the sale through the P plan (pre-rehabilitation plan) after the autonomous restructuring support (ARS) program before legal management commences. There is even a possibility that the P plan may be liquidated if it is destroyed. Senior Vice-President Choi said, “If a rehabilitation plan is prepared in consultation with Ssangyong Motors and potential investors, it is possible to decide whether to agree to the P plan after confirming the feasibility of the investment execution or Ssangyong Motor’s business plan.” In addition, “If the P plan fails to attract new investments or the business is not feasible, the normal rehabilitation process is expected to be inevitable.” “It is necessary to promote normalization by attracting strategic investors with a high understanding of the automobile industry.” He said.

Reporter Jeong Jinsoo of Donga.com [email protected]