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SsangYong files for Korean receivership

SsangYong Motors has filed for court receivership in order to avoid bankruptcy and cope with liquidity problems caused by falling demand for large SUVs.

The South Korean manufacturer is 51% owned by Shanghai Automotive (SAIC) and will now go through a tough restructuring process in Korea in order to cut costs.

Receivership in Korea is more akin to Chapter 11 in America which companies operate under while restructuring and refinancing.

Paul Williams, managing director of UK importer for SsangYong, Koelliker, has already issued a letter to the network reassuring that UK operations will continue as normal.

Williams said: "There is no indication that SAIC have walked away from their investment in SsangYong.

"This is the most responsible and administratively correct process to follow and given the often confusing terminology used in these circumstances should not be confused with the English definition of liquidation or receivership."

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