SsangYong Motor extends plant suspension amid pandemic
SEOUL, Feb. 5 (Yonhap) -- Financially troubled carmaker SsangYong Motor Co. said Friday it will extend the suspension of its local plant due to a lack of parts supplies from contractors.
SsangYong Motor already halted its plant in Pyeongtaek, 70 kilometers south of Seoul, on Dec. 24, Dec. 28, and Feb. 3-5 as its subcontractors refused to deliver parts due to outstanding payments.
The SUV-focused carmaker filed for court receivership on Dec. 21 after it failed to obtain approval for the rollover of existing loans from its creditors.
SsangYong received a two-month suspension of its obligation to pay its debts as it aims to find a new investor during the period before the court-led restructuring begins on Feb. 28. The suspension period can be extended depending on the court's decision.
SsangYong's Indian parent firm Mahindra & Mahindra Ltd. is in the process of selling its controlling stake in the Korean unit, denying reports that the deal has fallen through.
Mahindra acquired a 70 percent stake in SsangYong for 523 billion won in 2011 and now holds a 74.65 percent stake in the carmaker.
SsangYong Motor's factory in Pyeongtaek, just south of Seoul, is seen in this photo taken on Dec. 21, 2020. (Yonhap)
kyongae.choi@yna.co.kr
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