SsangYong Motor resumed operations at its Pyeongtaek plant in South Korea on Tuesday (2 March) after a two week closure due to a shortage of components.
The Mahindra and Mahindra majority-owned automaker's only plant, 70km (44 miles) south of Seoul, was shut for 16 days in February after local manufacturers refused to supply components because of significant overdue payments.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The automaker filed for bankruptcy on 21 December 2020 after it failed to meet debt obligations and creditors refused to extend loan repayment deadlines.
It was given a two-month reprieve on repayments by a local bankruptcy court at the end of December, to give the company time to find a new investor, before a court led restructuring was scheduled to begin on 28 February.
A SsangYong spokesman confirmed "the debt payment grace period has been extended as talks with potential investors are still under way".
Mahindra & Mahindra is in the process of selling all or most of 70% stake in Ssangyong but is said to be struggling to agree financial terms with a potential buyer.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
