KG Mobility picked as final bidder for Edison Motors

KG Mobility, formerly SsangYong Motors, said Monday it has been selected as the final bidder for Edison Motors Co., which has been under the court-led debt rescheduling program since January.

In April, a bankruptcy court in the southeastern city of Changwon selected KG Mobility as a preferred bidder to acquire Edison Motors.

KG Mobility submitted a letter of intent to acquire Edison Motors in March, conducted preliminary due diligence early in April and submitted an investment proposal to the bankruptcy court in Changwon, which is in charge of the debt restructuring of Edison Motors.

KG Mobility signed a "conditional" deal with Edison Motors to acquire the electric bus maker in April.

The court proceeded with the auction in the form of a stalking horse bid, in which the preliminary bidder, KG Mobility, suggested its price for Edison ahead of the auction and other bidders submitted their prices in the auction.

If a bidder suggested a higher price, KG Mobility had to decide whether to take over Edison at the other bidder's price or not.

"But there were no other bidders in the auction," a person with direct knowledge of the matter said over the phone.

Edison Motors tried to acquire SsangYong Motor early last year but failed to make a full payment for the debt-laden carmaker, which was under court receivership, by the March 25 deadline.

This file photo provided by KG Mobility shows the upgraded Tivoli compact SUV. (PHOTO NOT FOR SALE) (Yonhap)

Source: Yonhap News Agency

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