‘Liquidity Crisis’ Ssangyong Motor… Applying for corporate rehabilitation in 11 years l KBS WORLD Radio

Photo : YONHAP News

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Ssangyong Motors was unable to overcome the accumulated business deficit and applied for rehabilitation procedures to the court on the 21st.

This is an application for rehabilitation in 11 years since the global financial crisis in 2009.

Ssangyong Motor has been suffering from business difficulties, recording a deficit for 15 consecutive quarters.

Ssangyong Motor failed to repay the 6 billion won previously borrowed from foreign banks, and the loans due to extend maturity on the 21st also failed to repay.

The total amount of delinquent principal and interest is KRW 15 billion.

Ssangyong Motor applied for the rehabilitation process and applied for the application of the self-structuring support program to the court.

This is a system that delays the commencement of the rehabilitation process for up to three months, so that the same business as before is possible without repaying debts.

During this period, Ssangyong Motor plans to make an early request to the court to withdraw the rehabilitation procedure by agreeing with creditors and completing negotiations for new investors.

The Ssangyong Motors union protested that the majority shareholder Mahindra had not been able to fulfill its responsibilities, and the government was also responsible.

The government plans to provide support as much as possible to alleviate the difficulties of Ssangyong Motor’s parts suppliers.

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