KGM Motor Rehabilitation Procedure Update
KGM Motor Company has been in discussion with an investor for some time now and awaiting a signed letter of intent (LOI). The due date for the LOI has now expired and with discussions delayed, KGM Motor Company has decided to progress with what is known as “Merger & Acquisition (M&A) before authorisation on a rehabilitation plan.”
This change with the court’s approval is expected to lead to quicker negotiations with investors since the bidding process proceeds fairly and transparently following the M&A rules and is expected it can conclude on more favourable terms by averting delayed negotiations with a single candidate. This means that other interested parties can also be considered for investment in SYMC. In addition, further applicants are unofficially showing their intention to participate.
KGM Motor Company is currently making every effort to transform its situation by selling non-core assets and undergoing a level of business reengineering unprecedented in the industry.
Furthermore, and in consultation with suppliers, the company will soon resume production and continue to provide customers with the highest level of sales and after-sales service.
KGM Australia will continue to be supported through this process as a wholly owned subsidiary of SYMC. While the restructure takes place in Korea, there will be no changes to the Australian business in support of its sales and aftersales operations as we work through the process while the brand continues its growth trajectory in Australia, currently at 69% over previous year.
We thank you for your ongoing support of the brand and will continue to update you when information officially becomes available.
