Ssangyong in Last-Ditch Attempt to Find Buyer
29 June, 2021
Ssangyong issued a sale notice on Monday to launch the search for a new owner.
The cash-strapped SUV maker said it will accept letters of intent from buyers by July 30 and conduct a preliminary assessment in August. It hopes to find a preferred negotiating partner by late September.
But the search for a buyer with deep pockets is expected to be difficult. U.S. car retailer HAAH Automotive Holdings, which had signaled interest, is now in financial difficulties of its own.
One industry insider said, "Chinese automakers have shown interest, but there is no guarantee that the union will accept an offer due to bad memories of SAIC, which bought Ssangyong and then drove it into court receivership."
Court-appointed assessor Ernst & Young Korea told the Seoul Bankruptcy Court in an interim assessment last week that liquidating Ssangyong would raise W1 trillion but keeping it running would result in a corporate value of only W600-700 billion (US$1=W1,132).
Source:
TAG(s):