SSANGYONG MOTOR HAS AVOIDED LIQUIDATION AND NOW HAS TO CHANGE ITS NAME

The automaker from South Korea managed to find an investor to avoid liquidation. The deal on the transfer of the enterprise under the control of the chemical concern KG Group was approved in the Seoul court. The investment will amount to about $700 million (950 billion won). As a result, the company is planned to be renamed, having carried out a global restructuring of its assets.

The creditor banks and the court approved the plan to transfer the company under the wing of KG Group. According to the deal, the former owner of the Korean company, the Indian conglomerate Mahindra & Mahindra (M&M), will turn from a majority shareholder with a 74.65% stake into a minority co-owner. Its share in the new structure will be less than 10%.

KG Group will own a 61% stake in the company. The automaker will have to change its name. It is assumed that the company will be called KG SsangYong Mobility, but there has not been an official release on this yet.

A few years ago, Rusbankrot wrote about the bankruptcy of the South Korean "daughter" of M&M, which owed 60 billion won on loan payments and went under external management. Then it brought down the company's sales by more than 88% and disrupted expectations of promising profits.

Since the end of 2020, the company, which was under external management, continued to function. The management managed to establish the work of the enterprise and even produce new cars. In June 2022, the presentation of the new Torres crossover took place. In the first seven months of the year, the company managed to sell more than 58.46 thousand cars. Thus, the sales volume exceeded the figures of the previous year by 20.6%.

Experts note that the company managed to find a buyer of assets very timely. If this had not been done now, the company could have been liquidated in the near future. Earlier, the Edison Motors consortium came up with the idea of acquiring SsangYong, but it was not possible to formalize the deal.

 KG Group will now become the main owner of the company. The corporation appeared in 2003 as a fertilizer manufacturer. Currently, among the assets of the organization there are steel production enterprises, a network of catering establishments. The firm owns a construction and consulting business, participates in educational, media and financial projects. Now the automotive industry will be added to them.

Фото: Изображение от ArtPhoto_studio на Freepik