Edison Motors applied for an injunction to stop the sale of Ssangyong Motor, which is undergoing corporate rehabilitation, but the court rejected it.
Section 50 of the Civil Settlement of the Seoul Central District Court yesterday rejected the application for an injunction to ban the proceeding of the sale procedure and the application to suspend the effect of contract cancellation, respectively, filed yesterday by Edison EV and Edison Motors against the manager of Ssangyong Motor.
Edison EV formed a consortium and signed an M&A investment contract with Ssangyong Motor in January, but was not able to pay the balance of KRW 274.3 billion by March 25, the deadline for payment of the acquisition price, excluding the down payment of KRW 30.5 billion.
In response, Ssangyong Motors notified Edison Motors to terminate the contract.
The Seoul Rehabilitation Court accepted Ssangyong Motor's application on the 14th of last month, and allowed the merger and acquisition to resume before approval of the rehabilitation plan.
With this court decision, the resale process of Ssangyong Motor will continue.
Ssangyong Motor plans to select the final takeover person next month and sign the main contract in early July.