Ssangyong Motor "No Grounds to Accept Edison Motors' Special Appeal"

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Hyun-seok] Ssangyong Motor has stated that there is "no possibility of acceptance" regarding Edison Motors' Supreme Court special appeal against the court's decision to exclude its rehabilitation plan, and urged them to stop distorting the facts.

On the 6th, Ssangyong Motor said in a statement, "Edison Motors is spreading materials that mislead distorted legal principles and facts, falsely claiming that resale has become difficult or that there are no alternatives other than themselves," adding, "Their continued media activities are highly suspicious in intent and constitute a clear act of business obstruction."

Earlier, Edison Motors filed a special appeal to the Supreme Court against the Seoul Rehabilitation Court's decision to exclude its rehabilitation plan.

However, Ssangyong Motor emphasized that the special appeal does not have the effect of suspending execution. Ssangyong Motor explained, "Special appeals or provisional injunction applications do not have the effect of suspending execution," and "Edison Motors' claim that resale cannot be pursued due to special appeals or provisional injunctions suspending the effect of contract termination is not true and clearly distorts legal principles."

In particular, it stressed that the Seoul Rehabilitation Court's exclusion decision cannot be subject to special appeal and has no possibility of acceptance. The company explained, "It is clearly stipulated in the Debtor Rehabilitation Act that the exclusion decision by the rehabilitation court cannot be appealed," referring to "the exclusion decision by the rehabilitation court pursuant to Article 231 of the Debtor Rehabilitation and Bankruptcy Act."

It added, "The decision was made in a situation where Edison Motors failed to pay the acquisition funds within the deadline set in the investment contract, making debt repayment impossible," and stated, "There is no violation of the Constitution or any laws."

It also dismissed Edison Motors' unilateral claims that the deadline for submitting the rehabilitation plan was extended to May 1 in violation of procedures and that the approval deadline for the rehabilitation plan is until July 1. Ssangyong Motor explained, "The rehabilitation plan, which was drafted and submitted on the premise that the remaining acquisition funds would be deposited within the deadline, was excluded due to Edison Motors' failure to fulfill its obligations," and "Since the rehabilitation plan no longer exists, Edison Motors' claims cannot be established."

Furthermore, it emphasized, "Given the clear fact that Edison Motors did not deposit the acquisition funds within the deadline, even if Edison Motors' claims were accepted, this is unrelated to the termination of the investment contract," and "Therefore, Edison Motors cannot regain the status of acquirer."

Meanwhile, Ssangyong Motor plans to decide on the sales method soon and actively pursue resale, as it is currently in contact with multiple prospective buyers.