Ssangyong’s UK dustributor, Koelliker UK, has stressed that it is business as usual following the decision last week by a court in Korea to grant Ssangyong ‘court receivership’ status.
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The firm’s UK distributor said the ruling paves the way for radical restructuring and the opportunity of forging a stronger and leaner company with a more diversified product range.
Court receivership is similar to US Chapter 11 status, giving SYMC protection from creditors and time to formulate and implement a corporate resuscitation plan. Under the new arrangements, the court has appointed former Hyundai Motor president Lee Yoo-il, and SYMC vice-president in charge of finance, Park Young-tae as co-legal administrators.
Ssangyong will now present its restructuring plan by June this year.
The court’s decision was welcomed by around 7,200 SYMC employees and creditors, led by state-run Korea Development Bank.
Paul Williams, managing director of UK distributor Koelliker UK Ltd. said:
“This is very good news after a worrying period, and I want to thank our staff and dealers for their faith and confidence in toughing it out and getting on with the job. Restructuring won’t be easy, but we now look forward to the continuing new model development programme and a fitter and stronger SsangYong, better able to meet the challenges of tomorrow.”
He added: “SYMC was profitable in 2007, and as we gradually work our way out of this global recession, there’s every reason to look forward to a better future.”
See also: SOUTH KOREA: Court approves Ssangyong receivership
