Ssangyong's Rescue Plan to Be Voted This Week
Just last week, a revised version of the rescue plan was rejected by Ssangyong creditors. The result was expected, as Ssangyong's foreign bondholders have already opposed the size of the capital writedown, while shareholders supported it.
Ssangyong said the company had made "every possible effort to submit a plan that was fair and equitable to all parties through ample discussions with stakeholders. It is extremely regrettable to see the modified plan was voted against by a group of creditors especially when the plan included several new suggestions in consideration of the company's legal ability to redeem."
"It is regrettable to see our turnaround plan being rejected again by a group of creditors even after we did our best to make the plan as fair and equitable as possible," said Lee Yoo-il and Park Young-tae, Ssangyong Motor Company's co-legal trustees.
"However, most of the creditors want to see Ssangyong Motor Company revive, and we're also making every effort to normalise the operation by close labour-management cooperation. We therefore look forward to see the final approval on December 17," they added.
Ssangyong has its biggest creditor, the Korea Development Bank, supporting its revival plan. Considering that the brand is important to the national economy, there's some light at the end of the tunnel for the Korean brand, when the bankruptcy court makes its final decision.