SsangYong applies for rehabilitation procedures

SsangYong Motor Company has applied for rehabilitation procedures, including a Company Property Preservative Measure, a General Prohibition Order and Autonomous Restructuring Support. The decision whether to commence with the rehabilitation procedures is to be agreed with stakeholders.

SYMC delayed repayment of loans and interest due to worsening business conditions and has been seeking to extend the maturity date with its lenders, but has been unable to reach an agreement.

However, the company plans to resolve the current liquidity issue early before the rehabilitation procedures are commenced by applying for Autonomous Restructuring Support.

Autonomous Restructuring Support is a private restructuring support programme made with the court which delays the initiation of the rehabilitation procedures by up to three months while the company continues its attempts at private restructuring. During this period, the company continues its normal business activities.

An official source from SYMC, said: “We very much regret this situation which is the result of the difficulties being experienced from the worldwide Covid-19 situation, and the concern caused to our partners and stakeholders, especially our employees, sales networks and financial institutions. We are making every effort to transform the situation, and to build a more robust and competitive company for the future.”

Kevin Griffin, managing director for the brand in the UK, said: “Whilst this situation is not ideal, I strongly believe that the Autonomous Restructuring Programme will result in the birth of a stronger company. I want to reiterate that our UK operations are totally unaffected, and we are very much open for business.”