[Asia Economy Reporter Yoo Hyun-seok] EdisonEV has expressed its intention to engage in a legal battle by filing a special appeal regarding the failed investment contract for the acquisition and merger (M&A) of Ssangyong Motor.
On the 5th, EdisonEV reiterated its strong commitment to acquiring Ssangyong Motor through a press release and announced that it had filed a special appeal with the Supreme Court the day before against the court's decision to exclude its rehabilitation plan.
Previously, although the acquisition balance of 274.3 billion KRW was required to be paid by the 25th of last month, five business days before the scheduled creditors' meeting on the 1st, the Edison Motors consortium failed to make the payment. As a result, on March 28, Ssangyong Motor announced that the contract with Edison Motors had been terminated.
An EdisonEV official stated, "Regarding Ssangyong Motor's contract termination notice, the unilateral contract termination notice by Ssangyong Motor's administrator Jeong Yong-won is invalid," and added, "We have filed a provisional injunction requesting the suspension of the termination notice's effect as the Edison Motors consortium's contractual status is maintained." He further explained, "To prevent the Ssangyong Motor administrator's attempt to abscond with the deposit, we also filed a request to prohibit the withdrawal of the already paid deposit."
EdisonEV explained that, based on a legal advisory review by the law firm Kwangjang, it received a response stating that if Ssangyong Motor pursues a new M&A contract, there would be procedural illegality. A company official said, "There are two main points: first, the allowed time for the Ssangyong Motor M&A is interpreted not as October 15, six months from now, but as July 1 as the deadline," adding, "Procedures such as submitting a rehabilitation plan after that date could be considered illegal."
He continued, "The court's decision to extend the rehabilitation plan submission period until May 1 may also be procedurally illegal."
EdisonEV emphasized that the court's decision to extend the rehabilitation plan submission period until May 1 could also be procedurally illegal. An EdisonEV official explained, "If even one of the interpretations by the law firm Kwangjang is accepted by the court, the only realistic option for Ssangyong Motor would be to resume acquisition negotiations with Edison, aside from liquidation procedures."
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