Graduation from Receivership
Ssangyong Engineering & Construction (E&C), which was recently taken over by the Investment Corporation of Dubai (ICD), finished a court-managed corporate rehabilitation program 14 months after it filed for protection due to financial difficulties at the end of 2013.
The company announced on March 26 that the Seoul Central District Court decided to end its corporate rehabilitation program.
Ssangyong E&C went into court receivership on Jan. 9 last year and concluded a purchase contract with the ICD at the price of 170 billion won (US$153.85 million) at the end of January this year, three months after it made the public notice of sale in October last year.
The company was relatively quick to graduate from legal management, since the court put the corporate rehabilitation program on a fast track. Accordingly, Ssangyong E&C is expected to win contracts at home and abroad, especially from abroad.
The ICD is a sovereign wealth fund owned by the U.A.E., and its working capital amounts to nearly 175 trillion won (US$158.37 billion). Some say that the annual orders will reach 4 to 5 trillion won (US$3.62 to 4.52 billion).
A Ssangyong E&C spokesman said, “As Chairman Kim Suk-joon has become directed in the company management, there will be no problem to win overseas contracts in the existing Southeast Asian region, including Singapore. With the normalization of the company, we will become a blue chip company, which will benefit the national interest.”