▪The Seoul Central District Court will decide on whether to approve the turnaround plan on Dec. 17
▪Overseas CB creditors becomes a tumbling block in Ssangyong’s effort to revive the company.
▪The final approval of the turnaround plan is urgently needed to minimize creditors’ loss.
▪The court’s approval of the self-rescue plan is very likely as the company makes efforts in normalizing the operation with close labor-managementcooperation.
The final decision on whether to approve Ssangyong Motor Company’s revised plan to turn around the company will be made by the court on December 17th as the 3rd creditors’ follow-up meeting received a date for the final decision held at the Seoul Central District Court on Dec. 11th.
Ssangyong Motor Company deplored the result of the voting commenting that the company had made every possible effort to submit a plan that was fair and equitable to all parties through ample discussions with stake holders. It is extremely regrettable to see the modified plan was voted against by a group of creditors especially when the plan included several new suggestions in consideration of the company’s legal ability to redeem, added Ssangyong Motor Company.
After the painstaking restructuring process, Ssangyong Motor Company’s management and labor alike had put in their hearts and minds to revive the company. The company’s months-long efforts went down on 17th by some foreign CB creditors and their irrational requests that went beyond relevant law and precedents.
In addition, it will be a major loss for the national economy if we let go of the opportunity to take advantage of the experience and know-how that Ssangyong Motor Company accumulated over the past 5 decades in Sport Utility Vehicles, Luxury Sedans as well as in high-tech diesel engines, explained Ssangyong Motor Company.
As the overseas creditors decided to oppose Ssangyong’s turnaround plan on December 9th, representatives of Ssangyong’s vendor network comprising of over a thousand suppliers strongly requested the court to approve Ssangyong’s self-rescue plan by submitting a written petition. This petition was supported by representatives of laborers, management, community as well as politicians including the mayor of Pyeongtaek City and the Chairman of the Labor Union.
“It is regrettable to see our turnaround plan being rejected again by a group of creditors even after we did our best to make the plan as fair and equitable as possible," said Lee Yoo-il and Park Young-tae, Ssangyong Motor Company’s co-legal trustees. "However, most of the creditors want to see Ssangyong Motor Company revived, and we’re also making every effort to normalize the operation by close labor-management cooperation. We therefore look forward to see the final approval on Dec. 17, "they added.