SsangYong Motor line rolling again after part deliveries resume
Published: 29 Dec. 2020, 16:49
The beleaguered automaker said Tuesday that the factory is running again as some deliveries have resumed.
Negotiations are continuing, but the company has already been able to get some of its contractors to agree to supply enough components to keep the manufacturing line running, though the company notes that operations are still below 100 percent.
The plant was shut on Dec. 24 and Dec. 28 as companies refused to deliver parts on concerns that the cash-strapped automaker would be unable to pay its bills.
Hyundai Mobis, LG Hausys, S&T Dynamics and Continental Automotive are among the companies that have suspended deliveries. Hyundai Mobis and S&T Dynamics resumed their deliveries on Dec. 29, but the remaining companies have yet to do so.
The two-day suspension disrupted production of some 1,300 units, according to the carmaker.
SsangYong Motor’s request for an autonomous restructuring support (ARS) program was filed along with its court receivership application on Dec. 21. The court accepted the ARS program request on Tuesday, according to the filing
The ARS program delays the court receivership process by a maximum of three months to give the troubled company more time to negotiate with the creditors and raise funding. The filing said the court’s decision on whether to order the receivership program will be delayed until Feb. 28, 2021.
Until then, SsangYong Motor plans to negotiate with the creditors to roll over the overdue payments while selling more cars to partially address its liquidity crunch.
After defaulting on 165 billion won of overdue payments, SsangYong Motor filed for court receivership last week, just 11 years after an earlier receivership.
BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]
with the Korea JoongAng Daily
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