A court decision on the future of debt-burdened SUV specialist Ssangyong Motor was on Friday delayed until 17 December after a revised rescue package failed to win approval from creditors. The court will decide on whether to approve the plan or liquidate Ssangyong.
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Ssangyong, which has debts totalling KRW1.23 trillion (US1.05bn ), last month submitted a plan to shareholders that it hoped would save it from failure. That plan was rejected by the creditors, forcing the revision, news agency AFP noted.
The latest offer would see its biggest shareholder, China’s SAIC Motor, having its 51% holding cut to 11.2% through a five-for-one writedown. Other shareholders would face a three-for-one reduction.
That plan was also rejected Friday, leaving the fate of the carmaker with the Seoul Central District Court.
Ssangyong spokesman Choi Jin-Woong told AFP: “Our rehabilitation package failed to win approval again due to opposition from foreign creditors. We hope the court will push through our plan next week,” he said.
A Ssangyong source told just-auto insiders were still confident the automaker wouldn’t be allowed to fail.
