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.
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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.
