Filed under: China, Hirings/Firings/Layoffs, Plants/Manufacturing, Earnings/Financials
Korean automaker Ssangyong has reportedly restarted five of its production lines at its plants in Pyeongtaek and Changwon. Earlier this month, Ssangyong was forced to enter receivership as a last ditch effort to stave off bankruptcy after failing to negotiate a deal with
Shanghai Automotive Industry Corp., the Korean automaker's Chinese owners, and
Korea Development Bank, its largest creditor.
Prior to those negotiations, Ssangyong was hemorrhaging money due to a 50% drop in sales, which ultimately led to the
inability to make payroll and fulfill supplier contracts. At this point, Ssangyong must wait until February 9 to find out if the local court of Seoul will allow the automaker to enter bankruptcy protection proceedings. Sounds like the road will remain bumpy for Korea's fifth-largest automaker for the foreseeable future.
[Source:
Gasgoo | Image: AFP/Getty]
REPORT: Ssangyong restarts production originally appeared on Autoblog on Thu, 05 Feb 2009 17:40:00 EST. Please see our terms for use of feeds.
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