Wednesday, September 16, 2009
Ssangyong submits turnround plan
Ssangyong Motor the South Korean carmaker that filed for bankruptcy protection in February, has submitted a turnround plan to a Seoul court that would cut by a fifth the stake held by China's largest carmaker .
It asked the court to allow a five-for-one writedown of the stake held by its largest shareholder, SAIC Motor, followed by a further writedown at a later date. Ssangyong is also seeking a three-to-one writedown for other shareholders Ssangyong - which has $1 billion of debt - also wants creditors to agree to convert some debt into shares, leaving lenders with a 42% stake in the company.
If the rehabilitation plan succeeds, SAIC's controlling 51% stake in Ssangyong would be cut to just 11.2%.
The court will review Ssangyong's proposal and meet creditors on November 6 to decide on the plan's timeframe.
DATED: 16.09.09
FEED: AW
