KG Mobility announced that it received court approval for Edison Motors’ rehabilitation plan at a creditor meeting held on the 25th at the Changwon District Court.
At the creditor meeting, 100% of the rehabilitation secured creditors and 74.19% of the rehabilitation creditors agreed to the rehabilitation plan, surpassing the legal approval rate.
As a result, Edison Motors is expected to conclude the rehabilitation procedure early, approximately 10 months after applying for rehabilitation in November 2022, allowing the company to actively pursue normalization.
KG Mobility expects that, by diligently implementing the rehabilitation plan, which includes debt repayment, reduction, and conversion of capital, Edison Motors will significantly enhance its financial health and capital structure, thus further activating its business activities.
Before this, KG Mobility provided emergency operating funds for Edison Motors twice in May and August to support smooth production activities. Chairman Kwak Jae-sun personally visited the Edison Motors factory to encourage employees, while also reorganizing related organizations and deciding on the new corporate mission name KGM Commercial, marking the start of a swift management normalization process.
Edison Motors plans to adopt measures for business normalization by expanding its product lineup with mid-size buses and large intercity buses, strengthening collaboration in R&D and procurement with KG Mobility, improving profitability through enhanced efficiency, and increasing sales volume by expanding into global markets, with the goal of becoming a comprehensive eco-friendly commercial vehicle company.
Meanwhile, KG Mobility held a press conference on the 21st to discuss its future development strategy, revealing plans to expand from a focus on SUV passenger vehicles to commercial vehicle lineups via the launch of KGM Commercial. Furthermore, they aim to create a user-centered mobility environment by offering a One Stop Mobility Service through integrated mobility services.
KG Mobility stated, “The acquisition of Edison Motors is part of our search for new businesses for sustainable growth. In April, we launched a special vehicle company, KG S&C, and are also pursuing entry into the used car market. We plan to develop Edison Motors into a truly eco-friendly comprehensive commercial vehicle company through enhanced collaboration in areas like R&D and procurement with KG Mobility.”
Contact: 이상진 daedusj@autodiary.kr