Cash-Strapped SsangYong Motor Resumes Operations At Pyeongtaek Plant

Reporter Rosyn Park ㅣ 2021-03-02 16:51

A banner hangs outside the Ssangyong Motor plant in Pyeongtaek, Gyeonggi Province, offering words of encouraging the company after it suffered a temporary shutdown due to financial issues. (Photo: Yonhap News)

SsangYong Motor said Tuesday it has resumed the operation of its local plant after a weekslong suspension due to parts supply issues.

The cash-strapped carmaker halted its plant in Pyeongtaek for two days in December and more than two weeks in February as subcontractors refused to send parts due to outstanding payments.

On December 21, it filed for court receivership after it failed to obtain approval for the rollover of existing loans from its creditors.

The company received a two-month suspension of its obligation to pay its debts until February 28 while trying to find a new investor.

SsangYong's Indian parent firm Mahindra & Mahindra is in the process of selling its controlling stake in the Korean unit but reportedly faced difficulty in narrowing terms of the deal with a potential buyer.

Mahindra acquired a 70 percent stake in SsangYong for 523 billion won in 2011 and now holds a 74.65 percent stake in the company.