The announcement of the bankruptcy of SsangYong Automobiles Company came after a conditional investment agreement was concluded with a local consortium, provided that an auction will be held during the coming period, as the search process is still underway for a new investor to buy the company specialized in the manufacture and production of sports-equipped multi-use cars. (SUV) in order to save it from its troubled debts, and in this article we will learn about the details of the bankruptcy of SsangYong Motors Company, and its auction.
SsangYong Motors Corporation declared bankruptcy
SsangYong said it recently signed a conditional investment deal with a local consortium ahead of an auction soon in order to find a new investor for the company.
Indeed, the Seoul Bankruptcy Court recently selected a consortium run by South Korea’s industrial chemical-to-steel KG Group as the first bidder after SsangYong Motors was declared bankrupt.
The new bid to sell SsangYong comes two months after South Korean electric bus maker Edison Motors failed to pay 304.8 billion won ($249 million) in installments from debt-laden SsangYong by the March 25 deadline. last March.
The two companies: SsangYong and EY Hanyong Accounting Company announced the acceptance of KG-Pavilion PE’s offer, as the consortium’s offer managed to beat the rest of the other offers in terms of purchase price, financing plans, and employment guarantee period.
According to auction proposals, Consortium KG and Sangbangwol Group each bid 900 billion won and 800 billion won, respectively, for SsangYong, far above Edison’s.
It is noteworthy that SsangYong announced that it will participate in the upcoming auction without regard to the bidder, and for its part, the Seoul Bankruptcy Court has extended the deadline for the company, for the next six months so that the company can find a new investor, and then submit a modern restructuring plan for another six months That is, until October 15, 2022, before the bankruptcy of SsangYong Motors Corporation.
SsangYong Company Overview
SsangYong Motor Co. is one of the most important automobile manufacturers in South Korea, coming in at number four, and it is owned by the Indian multinational automobile company Mahindra & Mahindra Limited.
India’s Mahindra & Mahindra Limited acquired a 70% stake in SsangYong in February 2011, after submitting the best bid at a 2010 auction for the company that was on the verge of bankruptcy.
In January 2019, the stake of the Indian company Mahindra was increased to 74.65% of the stake of SsangYong, following the approval of the South Korea Free Trade Commission.
The SsangYong lineup consists of four-wheel drive vehicles: Korando, Tivoli, Rexton and Rexton Sports.
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