A court-appointed manager for Ssangyong has said that an accounting firm handling its receivership is likely to favour its survival over liquidation to recoup debts for creditors.
The Yonhap news agency reported that the auditor, Samjong KPMG Inc., plans to complete a due diligence of Ssangyong’s viability on May 6. If the automaker is deemed unviable, creditors will liquidate it.
“The auditor may judge that Ssangyong Motor’s survival would be more valuable than its liquidation,” Lee Yoo-il, the manager, said on the sidelines of the 2009 Seoul Motor Show.
“That’s why I came here to show off Ssangyong Motor vehicles,” Lee said.
Earlier this week about 1,800 minority shareholders of Ssangyong sued 13 current and former executives at SAIC, accusing the Chinese parent of using its position to take Ssangyong’s technology at a below-market price.
With the bankruptcy protection, SAIC, which still holds a 51-percent stake in Ssangyong, relinquished its control of the South Korean carmaker.
It is also reported in Korea that Ssangyong is considering hefty job cuts as part of a viability plan. Analysts say that could provoke industrial action from labour unions.
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