Ssangyong Motor’s labour union and management agreed Wednesday to resume bilateral dialogue on Thursday (July 30).

According to the company officials, representatives of management and labour agreed to hold talks at a so-called ‘peace zone’ of the Pyeongtaek plant at 9:00am on Thursday.

It will be the first time in 42 days that the two sides have met to discuss the problems that caused the dispute and raises hopes that an end could be close.

However, Ssangyong creditors added to pressure for a settlement by saying that they will file a petition asking the courts to declare the carmaker bankrupt unless the dispute finishes by the end of the month.

“Creditors agreed to file for bankruptcy in early August unless operations return to normal by the end of this month,” said a statement from the company.

Police have been reluctant to get involved in the management-labour confrontation which started after a massive layoff announced last month as part of restructuring efforts to keep the company afloat and avoid liquidation.

Ssangyong has been under court supervision since February.