이 기사는 2021년 12월 24일 07:49 thebell 에 표출된 기사입니다.

A consortium led by Edison Motors has drawn up a new funding plan to acquire debt-ridden SsangYong Motor, aiming to sell and develop the site of SsangYong’s manufacturing plant in Pyeongtaek through negotiations with Pyeongtaek City and SsangYong. The consortium plans to repay 700 billion won ($589 million) worth of priority debts through the development of the site.

The consortium led by Edison Motors aims to make a deposit and strike a final agreement with the South Korean carmaker before the end of this month, industry sources said on Wednesday. The consortium and SsangYong are in the final stage of negotiations to sign a deal.

Market experts are paying attention to whether the consortium will be able put an end to controversies over its financing ability using this plan and obtain consent for the rehabilitation plan.

The consortium initially sought to borrow funds from banks using SsangYong’s Pyeongtaek plant as collateral, but it apparently changed its plan from using a collateralized loan to developing the site in consideration of the proof of funds and debts to be repaid in the future.

SsangYong signed a memorandum of understanding with the city government of Pyeongtaek regarding the development of the site in July. The court-appointed manager of the carmaker and its labor union also agreed on the plan.

SM Group, which had reviewed a possible acquisition, was also attracted to SsangYong’s Pyeongtaek site. If developed into a residential site, the value of the site could increase to as much as 2 trillion won, which will enable the group to secure money more than enough to repay debts held by the carmaker.

The permission to change the use of the land is likely to be granted in the first half of 2023. The Edison Motors-led consortium is expected to develop the land into a residential site through negotiations with the city government.

The consortium is expecting up to 1 trillion won in development profit thanks to the change of use of the site. It would use the money to pay off immediate debts including overdue wages.

Given that it takes time to develop the site, the consortium will have to complete the negotiations with the creditor. The consortium has to prove its ability to repay the priority debts worth 700 billion won that must be paid in full.

The rehabilitation plan must get consent from unsecured creditors representing two thirds of the company's unsecured debt and secured creditors representing 100% of the company's secured debt to get the nod from the court. (Reporting by Seon-young Kim)