The issues surrounding Ssangyong and its bankruptcy are far from over.
With no new buyer or investor within sight, it seems the Korean marque's future is uncertain due to the various loans the automaker has to repay. American company HAAH Automotive Holdings had shown interest in Ssangyong, with reports saying that HAAH plans to provide up to KRW 300 billion financial aid for the company under the precondition that the Korea Development Bank (KDB), Ssangyong's biggest creditor, offers financial support as well. However, it seems things aren't going according smoothly.
In a new report by The Korea Times, the KDB said that they will only be providing additional loans or support after Ssangyong and HAAH reach an agreement over the automaker's revival. Specifically, the state-run lender adds that only after a realistic revival plan is presented will they consider injecting more funds into Ssangyong. They will then review and decide whether which action they will take.
HAAH Automotive, however, requested additional funds from KDB since they projected Ssangyong would incur losses of around KRW 500 to 600 billion (approx. PHP 21,336,840,195 to PHP 25,604,208,234) as the automaker completes legal and regulatory preparations for the sale of vehicles in the US.
With KDB and HAAH unable to reach a deal, Ssangyong's future has become even more uncertain as we speak. It doesn't help that the automaker had to shut down its facility last month due to failed negotiations between the company and its suppliers. Korea's financial authorities, however, have urged the two parties to make compromises and help the automaker get back on its feet. Authorities are worried that possible mass layoffs will be involved if Ssangyong fails to secure its future.
Will the KDB and HAAH be able to reach a deal, or will another company come to the aid of Ssangyong? With time ticking, the Korean marque's not out of their grave predicament yet.