이 기사는 2021년 06월 30일 07시38분 thebell에 표출된 기사입니다

South Korea’s financially ailing carmaker SsangYong Motor has officially been put up for sale.

EY Hanyoung, which is managing the sale process, will sell the automaker through a public auction, according to sources Monday. The seller will receive letters of intent and confidentiality agreement from potential buyers by July 30. It will run preliminary reviews of the bids until August 27, followed by a final round of bidding.

With the company put up for auction, market insiders are paying attention to whether the automaker will find a new owner. Previously, ailing budget carrier Eastar Jet held a competitive bidding after securing a stalking-horse bidder first.

But SsangYong Motor failed to secure a stalking-horse bidder. U.S. vehicle importer HAAH Automotive Holdings had expressed interest in the preliminary process, but did not officially submit its bid.

Several strategic investors also had expressed their interest in the deal, but it has to be seen whether they will remain in the race.

“In many cases, the sale price and reimbursement rate are discussed in advance through the right of first refusal when a buyer is keen to take over a company,” said an industry source. “Although there were potential buyers which had previously expressed their interest in SsangYong Motor, the sale is not being carried out through a stalking-horse bid, which reduces the possibility of clinching the deal.”

Market insiders noted whether the automaker will secure a buyer until the final round of bidding is the key to the deal. The deal may fall apart if potential buyers decide to pull out after submitting their letters of intent. Even if prospective buyers do submit their bids, the rehabilitation procedures can be cancelled if they offer less than the liquidation value.

“It is unclear whether HAAH will actually acquire the automaker despite its interest,” said the source. “The sale process desperately needs not only sufficient potential buyers, but those with a real intention to buy which will reduce the risk of cancellation of the final round of bidding.”

SsangYong Motor has reduced the burden of priority debts as its unionized workers accepted rotating unpaid leave and a wage cut. (Reporting by Seon-young Kim)