이 기사는 2021년 04월 15일 08시11분 thebell에 표출된 기사입니다

Market insiders are paying attention to whether debt-ridden SsangYong Motor will be sold through a stalking horse bid process as court-led rehabilitation proceedings loom.

SsangYong Motor is likely to begin rehabilitation proceedings as soon as the Seoul Bankruptcy Court makes its decision, industry sources said on Tuesday. The court’s approval is likely to accelerate the mergers and acquisitions (M&A) process of SsangYong Motor.

When the process of estimating its value as a going concern and liquidation value is completed, Ssangyong Motor is likely to begin its sale process by hiring its advisor. Given that its value as a going concern is lower than its liquidation value, the automaker will likely either start a liquidation process or find a new buyer.

Market insiders are paying attention whether the company will be sold through a stalking-horse bid process. In the stalking-horse bid, the car maker could select a preliminary preferred bidder ahead of a public auction in which other bidders submit their prices.

If SsangYong Motor secures its stalking-horse bidder before it starts its M&A process, the likelihood of deal closing could be heightened. If there is no other letter of intent submitted during the stalking-horse bid process, the seller will sign an agreement with the stalking-horse bidder and enter detailed due diligence and negotiations processes.

Some market insiders doubt whether the automaker will be sold through the process given that its discussions between U.S.-based HAAH Automotive Holdings had little progress during its autonomous restructuring support program. It is said that other companies that previously shown interest in SsangYong pulled out, heightening the possibility of the company being sold through a public auction.

Earlier this month, SsangYong Motor President and Chief Executive Yea Byung-tae stepped down from the post, taking responsibility for failing to attract investment from HAAH. (Reporting by Seon-yeong Kim)