Ssangyong Motor's negotiations to find a new owner are struggling.
As Ssangyong Motor, Korea Development Bank, the main creditor bank, India Mahindra, the major shareholder, and the US automobile retailer HAAH Automotive, which is considered a leading investor, fail to draw conclusions by the tentative negotiation deadline, the possibility of a breakdown in negotiations is also carefully raised. The atmosphere is long.
According to the financial sector, the consultative body is discussing the sale of Mahindra's stake in Ssangyong Motor.
It is known that the council had not reached an agreement by the 22nd, which was set as the deadline for negotiations internally.
The confrontation between Mahindra and HAAH Automotive at the end of the negotiations seems to be the decisive factor in the failure of the agreement.
After Mahindra handed over management rights to HAAH Automotive, it is said that there was a great deal of disagreement over whether to remain as a shareholder.
Mahindra acquired Ssangyong Motors in 2011 and now holds a 75% stake.
It is also heard that the conditions proposed by the Saneun to the Ssangyong Motors' union remain unsolved.
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 prohibiting any disputed actions before turning to a surplus and extending the collective agreement to three years,'only one won cannot be applied'.
Ssangyong Motor's union has not engaged in any industrial action since the declaration of no dispute in 2009, and it is known that it is a negative position to increase the term for a single agreement from one year to three years.
Although the conclusion has not been reached by the negotiation deadline set internally by the consultative body, there is a possibility that negotiations such as coordination will continue until the end of this month.
Considering the time it takes for the stake sale procedure and capital input, the shareholders' meeting in March, and the deadline for filing last year's audit report, we are in fact at the end of this month as the final deadline for negotiations.
There is a possibility that the negotiations will be concluded dramatically after coordination, but if the negotiations are concluded and fail, Ssangyong Motor's court management is inevitable.
Ssangyong Motor applied for corporate rehabilitation on December 21st last year due to the liquidity crisis.
The decision to commence the rehabilitation process has been pending until February 28, as the court has accepted Ssangyong Motor's Autonomous Restructuring Assistance (ARS) program.
If Ssangyong Motor fails to find a new owner, there is also a concern about the chain bankruptcy of parts suppliers.
This is because the maturity of the bills that Ssangyong Motors paid to its suppliers will return on the 29th of this month.
(Photo = Yonhap News)