Delayed payment of the balance of 274.3 billion won
It was confirmed that Edison Motors, which is in the process of acquiring Ssangyong Motor, failed to pay the balance of the acquisition price on time.
A Ssangyong Motor official said on the 27th, “The Edison Motors consortium failed to pay the balance until the 25th, the due date for the payment of the balance of the purchase price of Ssangyong Motor.” Previously, the Seoul Rehabilitation Court ordered Edison Motors to pay the full amount of the acquisition price 5 days before the meeting of related parties scheduled for April 1. The balance to be paid by Edison Motors is 274.3 billion won, excluding the 30.5 billion won previously paid as a down payment.
The meeting of stakeholders is a gathering where creditors and shareholders gather to decide on a rehabilitation plan containing a debt repayment plan in the process of reorganizing the company. Edison Motors originally planned to raise funds for the acquisition by attracting financial investors (FIs), but it is having difficulties in raising funds. Edison Motors plans to join the consortium to acquire Ssangyong Motors by joining U&I, a medical device company in which Edison EV, a subsidiary of Edison EV, is the largest shareholder. It is also known that there is a plan to continue the takeover operation by delaying the assembly of related parties.
Edison Motors submitted a request to the court on the 24th to postpone the assembly of related parties until May. The reason is that Ssangyong Motor’s creditors and union oppose the acquisition due to Edison Motors’ financial power, and it takes time to convince them. Edison Motors claims that it did not put in the purchase price because it is awaiting the court’s decision. An official from Ssangyong Motor said, “Not putting in the balance is a violation of the contract, but we will wait until the court decision is made on the 28th.”
