22 December 2020
South Korean manufacturer Ssangyong has filed for bankruptcy in its home country after defaulting on a loan repayment of 60 billion won (£40 million) – but the firm’s UK operations are unaffected by the move.
The SUV specialist has applied for court receivership, which include rehabilitation and restructuring procedures, due to what a spokesperson termed “difficulties being experienced from the worldwide COVID-19 situation”.
Indian automotive giant Mahindra & Mahindra holds a 74.65% stake in Ssangyong, and said the loan was due to be repaid on 14 December. Ssangyong said it delayed the loan due to “worsening business conditions”, and applied for the rehabilitation procedures to stop interruptions to its business operations.
SsangYong Motor Company files for bankruptcy in South Korean court 22/12/2020 in Manufacturer
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SsangYong Motor Company (SYMC) has applied for bankruptcy to South Korea’s Seoul Bankruptcy Court after the impact of the COVID-19 coronavirus pandemic left the carmaker facing financial difficulties.
The development comes a week after the OEM missed the repayment of 60 billion Korean Won to JP Morgan Chase Bank, South Korea, which was due on December 14.
An official statement published this morning (December 22) said SYMC had decided to apply for rehabilitation procedures including a Company Property Preservative Measure, a General Prohibition Order and Autonomous Restructuring Support - allowing time to agree a company restructure - following a board meeting yesterday.
SsangYong UK managing director says British operations are unaffected, and the company is “open for business”
22 Dec 2020
Korean budget brand SsangYong has filed for bankruptcy after it failed to repay creditors a 60 billion won loan - roughly £40,000,000.
The company claims it has delayed the repayment due to worsening business conditions globally, and having failed to come to an agreement to extend repayment deadlines with foreign lenders has applied for receivership.
“The company plans to resolve the current liquidity issue early before the rehabilitation procedures are commenced by applying for Autonomous Restructuring Support,” read a statement.
Autonomous Restructuring Support gives the brand a further three months to agree resolutions with creditors before court action.
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