Ssangyong C200 Concept
Not all hope is lost for SUV-focused Korean brand Ssangyong, whose future was in limbo thus far, having being ‘abandoned’ by its owner SAIC and such. It went into bankruptcy protection in February. It would be a shame for them to go down right now, having produced a rather interesting looking compact SUV concept recently.
The South Korean courts today finally approved Ssangyong’s revival plans – a 3 year program designed to increase competitiveness, return to profitability and triple revenues over their financial results this year. The courts said the revival plan proved to be more worthwhile than a liquidation, and now Ssangyong can finally seek new investments and financing to carry out this new revival plan.
“With supporters outnumbering opponents, we decided top give the green light to the plan to protect the interests of the majority. We also took into consideration the possible negative impact on the society and subcontractors if the self-rescue plan was rejected,” said Judge Ko Young-han. SsangYong had secured a majority number of votes for the plan from shareholders, bondholders and domestic creditors.
The plan includes a write-off of 80 per cent of the shares held by SAIC which will reduce its stake from 51 per cent to 11.2 per cent, and a conversion of 393 billion won of debt into new shares. Other shareholders will see their holdings written down at 3-to-1 initially, with a further write-down for all shareholders in January.
Don’t underestimate the Koreans – if Ssangyong can pull off the same amazing trick that Hyundai-Kia have done with both their brands, we’ll may soon be amazed at model after model churned out by a new “Korean Land Rover”.