Early in January we reported that Korean carmaker Ssangyong had filed for bankruptcy protection in an effort to avoid the Reaper?s blade. Now, while the company awaits word on whether the courts will approve the request for protection, it has restarted five assembly lines at its Pyeongtaek and Changwon plants.
When word came through that it was to be placed in receivership, Ssangyong?s component suppliers halted the supply of parts to the carmaker, effectively hamstringing the company?s ability to continue production. Many of these suppliers had not been paid in months.
The smallest of South Korea?s five carmakers, Ssangyong has struggled with falling sales figures and liquidity shortages. The company?s future is now in the hands of the local court of Seoul, where, if its protection is not approved, it is likely to declare bankruptcy.