SsangYong Motor Company’s latest annual financial report has been rejected by its external auditor as problems continued to mount for the ailing South Korean automaker currently under court receivership.
Samjong KPMG said in a regulatory filing this week it had rejected the automaker’s 2021 financial report for a second consecutive year, stating: “We have doubt over Ssangyong Motor’s ability to continue its business.”
The auditor said it could not be certain whether the automaker’s rehabilitation plan would be accepted by the bankruptcy court given its “low feasibility”.
The news came less than a week after the collapse of the proposed takeover of the company by a consortium led by local electric vehicle manufacturer Edison Motors Company. Edison made an initial payment of 10% of the agreed KW304.8bn (US$249m) acquisition price of Ssangyong in January, but failed to make the final payment for the remainder of the acquisition fee by the scheduled 25 March, prompting Ssangyong to cancel the deal.
Ssangbangwool (SBW), a local clothing manufacturer, has since expressed an interest in taking over the debt-laden SUV maker.
SWB sent a letter of intent to acquire Ssangyong on Thursday and was reported to have assembled a task force with a view to forming a consortium with affiliated companies including Kanglim Company, a manufacturer of heavy duty vehicles and equipment, to acquire Ssangyong.
An SBW company spokesman said: “Led by group affiliate Kanglim, we are actively considering the acquisition of Ssangyong Motor.”