Money-strapped Ssangyong Motors plans to chop a number of senior govt jobs even because it continues with its ongoing price chopping drive, stated folks conversant in the matter.
The Korean auto main has been put into courtroom receivership after a year-long try by Mahindra & Mahindra to get a brand new purchaser for the troubled SUV maker.
The transfer is anticipated to face backlash from the automaker’s labor union. Nonetheless ,”firing executives is a prelude to layoff of different working-class staff. The members of the union have already began demonstrations in entrance of the congress, the courtroom and Korean Growth Financial institution, stated Seung Bum, accomplice on the Seoul-based company regulation agency Yulchon.
The Seoul Chapter Court docket on April 15 accredited the debt-rescheduling course of for SsangYong Motor because the US-based HAAH Automotive didn’t submit a letter of intent (LOI) by the March 31 deadline.
Court docket receivership is one step in need of chapter in South Korea’s authorized system. In receivership, the courtroom will resolve whether or not and methods to revive the corporate.
Normally, an organization within the rehabilitation course of will nonetheless need to discover a new investor that may inject capital in order that the corporate can get out of the method. Subsequently, HAAH continues to be within the image however it might have misplaced its exclusivity, permitting different potential traders to additionally negotiate with SsangYong, stated Bum.
SsangYong has been in talks with US automobile importer HaaH to promote its majority stake because it filed for courtroom receivership in December after failing to acquire approval for the rollover of 165 billion gained value of loans from collectors. SsangYong was given a three-month suspension of its obligation to pay the money owed as a result of talks with HaaH.
KPMG Samjong Accounting Corp., the auditor of SsangYong, declined to present its opinion on the carmaker’s annual monetary statements for the yr of 2020.
Mahindra had earlier determined to shelve its plans to infuse $400 million fairness in SsangYong after paying Rs 2,100 crore, or $463 million, for its buy a decade in the past.
