Nine bidders emerge for bankrupt Ssangyong

August 9, 2021 (Last Updated August 9th, 2021 10:39)

Is there hope for a Ssangyong future?

Nine bidders emerge for bankrupt Ssangyong

The administrators of Ssangyong Motor reportedly received nine separate bids to take over the bankrupt automaker.

Last April, the Seoul Bankruptcy Court appointed EY Han Young as the lead administrator with the task of finding a new investor for the bankrupt automaker, after its majority shareholder Mahindra & Mahindra refused to invest fresh funds.

The administrator set a 31 July deadline to receive bids for the automaker in a closed auction, aiming to end preliminary due diligence on the companies by the end of August and to select a preferred bidder in September.

Local analysts suggesteded it would require a bid of between KRW800bn and KRW1trn ((US$700m-US$870m) to take over Ssangyong.

According to local reports, domestic equity fund Korea Corporate Governance Improvement (KCGI) has joined a consortium consisting of Edison Motors Company, Keystone private equity fund and two other financial investors.

Other bidders are understood to include Cardinal One Motors, a new company established by Duke Hale, the founder and CEO of US vehicle importer HAAH Automotive Holdings, plus medium size local conglomerate SM (Samra Midas) Group.