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Creditors of Edison EV file for company's bankruptcy amid failed SsangYong acquisition

All News 20:38 May 04, 2022

SEOUL, May 4 (Yonhap) -- Edison EV, an affiliate South Korean electric vehicle maker Edison Motors Co., said Wednesday its creditors have filed for the company's bankruptcy with a local court, amid the parent company's recent failure in completing a deal to acquire SsangYong Motors Co.

Edison EV said in a regulatory filing that eight creditors of the company have filed for the company's bankruptcy with Suwon District Court. The company said its outstanding corporate bonds amounted to 3.6 billon won (US$2.84 million).

The company plans to hold discussions with the creditors and respond with legal measures.

The bankruptcy filing came after SsangYong, the South Korean unit of Indian carmaker Mahindra & Mahindra Ltd., canceled a 304.8-billion-won deal in March to sell its controlling stake to Edison Motors due to the electric bus maker's payment failure.

Edison Motors had trouble raising funds for the deal as Edison EV, its key affiliate involved in the funding, was struggling with its own financial trouble with consecutive operating losses.

The court has set a new deadline for SsangYong to find a new owner and submit a new restructuring plan.

Last month, Edison Motor appealed a court decision nullifying a restructuring plan for SsangYong Motor Co. following the collapse of the deal.

Edison, however, has filed for a court injunction seeking to retain its position as the preferred bidder for SsangYong and asking the court to place the initial 10 percent down payment under provisional attachment.

The corporate logo of Edison Motors Co. (PHOTO NOT FOR SALE) (Yonhap)


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