SsangYong Motor Co. under court administration on Tuesday appealed the Korea Exchange for reevaluation on its blacklisted status for potential delisting.

The stock market operator disclosed that it would allow more time for the carmaker to improve its capital base to meet regulatory standards. Kospi-listed shares of SsangYong have been suspended.

SsangYong Motor received a disclaimer of opinion for its 2020 financial statements from an outsider auditor, a procedure before delisting review. It could avert the risk if the auditor confirms that the cause of disclaimer opinion has been eliminated.

The SUV-focused Korean car producer recently re-evaluated its property assets such as the Pyeongtaek headquarters in Gyeonggi Province plus 165 land lots to reflect the recent growth of its assets and capital for improvements in financial status.

Through the re-appraisal, the gross book value of the land lots increased to 681.37 billion won from 402.57 billion won as of the end of last year.

SsangYong Motor’s liabilities exceeded working capital by 111.8 percent as of the end of 2020. Total capital reached negative 88.1 billion won. When reflecting the appreciation in estate value, its capital may have increased to 190.7 billion won.

Meanwhile, a Seoul bankruptcy court will decide whether to start court-led restructuring this week upon naming SsangYong Motor President & CEO Yea Byung-tae as the manager.

By Pulse

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