SsangYong exits insolvency following acquisition by KG Group
SsangYong announced on Friday it made the final repayment on a bridge loan that has kept the Korean automaker afloat since it became insolvent in late 2020.
SsangYong, which doesn’t operate in the U.S., ran out of funds after its previous backer, India’s Mahindra & Mahindra, stopped further investment while searching for a buyer.
An initial deal to sell SsangYong to a consortium led by fellow Korean automaker Edison Motors fell through in May.
SsangYong was then sold to runner-up bidder KG Group, a Korean conglomerate specializing in chemicals and steel production, in June. KG Group acquired 58.85% of SsangYong at an alleged price of 335 billion won (approximately $253 million), together with a pledge to invest a further 564 billion won ($426 million) to fund operations.
Kwak Jea-sun took over as chairman and Jeong Yong-won as CEO following a September meeting of shareholders.
SsangYong now plans to focus on transitioning to an EV lineup in a bid to return to profitability. The automaker in June launched the new Torres SUV with a gas engine, and plans to an electric option next year.
The automaker has also previously announced a plan to build a vehicle plant in Saudi Arabia.