State lender Korea Development Bank (KDB) maintains it cannot provide additional financial aid unless SsangYong Motor Co. under court management finds an investor with viable investment and business vision to normalize the distressed vehicle producer.

“KDB cannot judge on further financial aid for SsangYong unless we see business plan from a new investor,” said Lee Dong-gull, chairman of KDB, at an online press conference held Monday.

SsangYong Motor’s management submitted union-approved self-rescue measures with focus on pain-sharing through half of factory workers’ rotating unpaid furlough for up to two years.

Lee however said the measures cannot persuade the creditor as well as potential investor.

“I advise SsangYong to put itself in investors’ position. SsangYong hardly can be normalized within two years and the promise (on pay cut or freeze, rotational leave for streamlining and refrain from strikes for two years) cannot convince an investor due to the risk of renewed conflict and increased labor cost after two years,” said Lee.

“We have nothing to give or say to SsangYong as we have not received a business plan from potential new investor, “he said.

He also suggested being unhappy about the candidates so far. “A sincere candidate is hard to come by,” he said when asked about his thoughts on the list of candidates.

Bids will be received by the end of June, and the entire M&A process will likely end later this month, according to Lee.

About three are said to be interested in SsangYong Motor – the earlier bidder California-based HAAH, electric bus maker Edison Motors Co. and a consortium of EV manufacturer Kpop Motors Co. and a private equity fund. None are said to be financially apt to afford a finished carmaker laden with debt and in dire need of new investment.

Up for sale is a portion of stake of Indian parent Mahindra & Mahindra Ltd. Industry which is readying to exit from the Korean market.

By Yoon Won-sup and Lee Ha-yeon

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]