Edison Motors applies for an injunction to suspend the effect of ‘Ssangyong M&A contract cancellation’▶ Click here for a larger view
Edison Motors announced on the 29th that it had filed an injunction with the Seoul Central District Court on the 29th to request the suspension of the cancellation effect of Ssangyong Motor’s M&A (merger and acquisition) investment contract.
Edison Motors and Edison EV have requested the court to suspend Ssangyong Motor’s notification of cancellation of the investment contract until the judgment on the main lawsuit is finalized.
Edison Motors also requested that Ssangyong Motor be banned from withdrawing about 30.5 billion won as a down payment.
Ssangyong Motor announced on the previous day, “The M&A investment contract was canceled because the Edison Motors consortium did not deposit the acquisition price due on March 25.”
The Seoul Rehabilitation Court required Edison Motors to pay 274.3 billion won, the balance of the acquisition price, five business days before the meeting of related parties. .
If the application for injunction is accepted, it is expected that the resale process of Ssangyong Motor will be affected.
An industry official said, “There will be no investors who want to acquire a company that is in a legal dispute.” “The contract has a deadline for payment, and Edison Motors did not fulfill it, so the possibility of quoting seems small.”
Apart from the down payment, it is expected that the operating capital of 30 billion won that Edison Motors lent to Ssangyong Motor will be returned without a separate lawsuit.
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