The acquisition of SsangYong Motor by an Edison Motors consortium is teetering on the edge as the rest of the purchase price for the debt-ridden carmaker has not been paid by the deadline, The Korea Times reported citing sources.
The Seoul Bankruptcy Court ordered payment of the balance 274.3 billion won ($223.8 million) by March 25, five business days before a creditors' meeting on April 1 to decide on a rehabilitation plan for SsangYong Motor, which won’t be held due to non-payment.
SsangYong now has the authority to terminate the M&A contract. A source has told the publication. The consortium already paid about 10 percent of the total acquisition amount or 305 billion won ($254.65 million).
Moneycontrol could not independently verify the report.
The source added that Edison Motors had asked the court to extend the deadline.
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SsangYong had filed for court receivership in December 2020, as the company failed to repay around 160 billion won worth of loans and its Indian owner, Mahindra & Mahindra, put SsangYong up for sale. In November 2021, Edison Motors and SsangYong signed a memorandum of understanding for the purchase.
In January 2022, the consortium led by electric car company Edison Motors agreed to acquire SsangYong Motor.
