SsangYong's Prepackaged Bankruptcy Plan Shows No Progress

SsangYong Motor's bid to file for a prepackaged bankruptcy is showing no progress, as its negotiation with new investor HAAH Automotive Holdings is being stalled amid the looming deadline to submit a restructuring plan to a local bankruptcy court, Korea Times reported. According to industry officials, Sunday, SsangYong Motor and HAAH have not reached an agreement over the latter's investment into the former, despite SsangYong's request for HAAH to express its intention to invest by Saturday. SsangYong has promised to submit documents regarding HAAH's investment to the Seoul Bankruptcy Court by the end of this month, as part of its prepackaged bankruptcy. Prepackaged bankruptcy is a procedure in which a restructuring plan is agreed with creditors before a company declares its bankruptcy and goes into court receivership. SsangYong needs agreements from half of its creditors. After announcing its plan to file for a prepackaged bankruptcy in February, SsangYong Motor and its largest shareholder Mahindra & Mahindra have been going through necessary processes. Read more.