-Discussions taking place with Mahindra and potential investor

-Plans to obtain creditor agreement ahead of the proposed way forward 

-Continuedefforts to reach agreement with interested parties

SsangYong Motor Company has announced that it is progressing its Plan-P (Prepackaged rehabilitation Plan) to achieve the normalization of its business as quickly as possible.

The company applied for the commencement of rehabilitation procedures together with Autonomous Restructuring Support to the Seoul Bankruptcy Court on December 21 last year. This was agreed by the court thus preventing the commencement of rehabilitation procedures until February 28th.

The company had planned to withdraw the application for rehabilitation procedure once it reaches the final agreement with the interested parties including Mahindra and the new investor. However, negotiations with this new investor have been delayed and it was necessary to consider the progress of Plan-P.

The Plan utilizes the rehabilitation plan submission prescribed in Article 223 of the Act on Debtor Rehabilitation and Bankruptcy in Korea. When the debtor still has an ability to repay debt or make a new investment, the debtor may develop a rehabilitation proposal and submit it to the court after obtaining the consent of the majority of creditors. The aim of the plan is to save cost and shorten the turnaround time.

SsangYong Motor Company is in discussions with the Mahindra Group and the potential investor on the Plan-P proceeding, and after the negotiations, the company will take steps to obtain the consent of creditors about the rehabilitation proposal.Specifically, the company is striving to quickly conclude negotiations regarding the payment for assembly parts with its supplier partners, with the aim of increasing sales through the launch of new products and aggressive marketing.The company is making every effort to make regular payments and continues to seek governmental cooperation to receive relevant financial support for assembly parts suppliers. <Ends>