SsangYong has been given the all-clear by a South Korean court to begin its restructuring plans.
The court confirmed a recent Samil Pricewaterhouse Coopers assessment that the manufacturer had a greater value as a going concern than its liquidated value, and ordered SsangYong to submit its full restructuring plan by mid-September.
SsangYong applied for, and was granted court receivership in February after the fall-out of the international credit crunch, a drop in demand and even higher raw material, oil and energy prices.
Court receivership is similar to US Chapter 11 status, giving the company protection fromcreditors and time to formulate and implement a corporate resuscitation plan.
Under the arrangements, the court appointed former Hyundai Motor president Lee Yoo-il, and SYMC vice-president in charge of finance, Park Young-tae as co-legal administrators.
Despite these uncertainties SsangYong already had much of this programme in place, including vital new model development and a reduction in its workforce by over a third.
SsangYong is now confident it can continue to grow with the introduction of such models as the all-new C200 ‘compact urban vehicle’ (pictured above) which is scheduled for production later this year.
We’ll be sure to keep you abreast of any further developments.
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