[Asia Economy Reporter Seongpil Cho] Ssangyong Motor, which is at a crossroads between life and death, will undergo rehabilitation procedures once again by court decision. It has been 10 years since it graduated from court receivership in March 2011.
The Seoul Rehabilitation Court, Rehabilitation Division 1 (Presiding Judge Kyunghwan Seo) decided on the morning of the 15th to commence rehabilitation procedures for Ssangyong Motor. Ssangyong Motor will proceed with the rehabilitation process under the supervision of a court-appointed administrator. The court appointed Yongwon Jeong, Head of Planning and Management at Ssangyong Motor (Executive Director), as the administrator. Following the decision to commence rehabilitation procedures, creditors, secured creditors, and shareholders must submit their lists from that day until the 29th. Claims for rehabilitation debts, secured rehabilitation claims, and stock reports must be filed at the Seoul Rehabilitation Court General Civil Affairs Office from the 30th until July 13. However, failure to report rights within this period may result in loss of those rights.
The court will request an investigator to conduct a detailed audit of Ssangyong Motor’s financial status, including accounting inspections. Han Young Accounting Corporation was appointed as the investigator. Based on the audit results, the administrator will prepare a detailed rehabilitation plan by July 1. If the creditors approve the rehabilitation plan at the upcoming creditors’ meeting and the court also sanctions it, Ssangyong Motor will implement the plan and proceed on the path to normalization.
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