▪The Samil Report says the company's sustainable value weighs over its liquidation value.
▪Successful restructuring and new financial supply are key to company revival.
▪Management normalization will be on track torevive the company.
Ssangyong Motor Company(www.smotor.com) revealed the company's standpoint for the first time since last February 6 when it had entered into the court receivership as Samil Pricewaterhouse Coopers, the court-designated accounting firm, turned in its investigation report on May 6.
According to the report, SYMC's real value is higher than the liquidation value, making it more feasible to revive the company. The report, however, put forth beforehand the premise that Ssangyong Motor Company's effort for restructuring shall result in a success and that new financial supply is made. This pointed to the fact that the ongoing restructuring and improvement of liquidity are the most pressing issues to be attended.
Ssangyong Motor Company made it clear that there would be some losses and sacrifices to achieve business normalization and that the company's value and future cannot be guaranteed without having met those premises. Therefore, the ongoing restructuring should proceed as planned, the person-in-charge emphasized.
Ssangyong Motor Company executed voluntary retirement at the end of April for white-color employees, and additional measures, such as voluntary retirement for factory workers and spin-off of the factory, are underway to avoid massive layoff. It will be inevitable to lay off the surplus labor if there remains any even with these efforts, explained the company.
Regarding new finance supply, even thought the outside experts forecasted that the cash flow would be stabilized after 2010 based upon the completion of the business normalization, the company needs additional financial incomings other than its limited operational profit in 2009 when the cost for restructuring and investment on its new C200 model will temporarily raise expenses.
Accordingly, Ssangyong Motor Company is trying to make a new 250 billion won loan with the mortgage of the company-owned mortgage-free asset (asset of Changweon Plant), the company revealed.
As the Samil report concludes Ssangyong Motor Company's value as a sustainable business, the company is committed to normalizing company management and protecting the creditors' interest.