A South Korean court has granted ‘court receivership’ status to SsangYong Motor (SYMC), paving the way for radical restructuring.
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.
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, 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.”