Ssangyong Motor Pyeongtaek Depot Center in Pyeongtaek-si, Gyeonggi-do. photo = Yonhap News
The court has decided to keep the contract cancellation effect between Ssangyong Motor and Edison Motors.
According to the legal community on the 18th, the Civil Settlement Part 50 of the Seoul Central District Court (Chief Judge Song Kyung-geun) rejected all applications for injunctions to suspend the sale process and to suspend the effect of contract cancellation filed by Edison EV and Edison Motors against the manager of Ssangyong Motor the day before.
Previously, Ssangyong Motor signed an M&A investment contract with Edison Motors, but Edison Motors notified the cancellation of the contract when Edison Motors did not pay the balance of 274.3 billion won by March 25. After that, it is going through the M&A process again with the permission of the Seoul Rehabilitation Court.
Edison Motors strongly opposed this, and filed lawsuits such as an application for an injunction to ban the resale process, an application for an injunction requesting the suspension of the cancellation of the M&A investment contract, and a special appeal against the Seoul Rehabilitation Court’s decision to exclude the rehabilitation plan.
As all Edison Motors’ applications were rejected, Ssangyong Motor was able to speed up the resale. Before the takeover of Ssangyong Motor, KG Group, Ssangbool Group, Pavilion PE, and ELBNT participated.
On the 13th, the Seoul Rehabilitation Court selected the KG Group-Pavilion PE consortium as the expected takeover of Ssangyong Motor. Ssangyong Motor is expected to confirm the final takeover person at the end of next month and get approval for the rehabilitation plan in August.
Oh Se-seong, reporter at Hankyung.com sesung@hankyung.com
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