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SsangYong Motor extends plant suspension amid pandemic

By Yonhap

Published : Feb. 5, 2021 - 15:21

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An exterior view of SsangYong Motor's Pyeongtaek factory in April. (Yonhap) An exterior view of SsangYong Motor's Pyeongtaek factory in April. (Yonhap)
Financially troubled carmaker SsangYong Motor Co. said Friday it will extend the suspension of its local plant due to a lack of parts supplies from contractors.

SsangYong Motor already halted its plant in Pyeongtaek, 70 kilometers south of Seoul, on Dec. 24, Dec. 28, and Feb. 3-5 as its subcontractors refused to deliver parts due to outstanding payments.

The SUV-focused carmaker filed for court receivership on Dec. 21 after it failed to obtain approval for the rollover of existing loans from its creditors.

SsangYong received a two-month suspension of its obligation to pay its debts as it aims to find a new investor during the period before the court-led restructuring begins on Feb. 28. The suspension period can be extended depending on the court's decision.

SsangYong's Indian parent firm Mahindra & Mahindra Ltd. is in the process of selling its controlling stake in the Korean unit, denying reports that the deal has fallen through.

Mahindra acquired a 70 percent stake in SsangYong for 523 billion won in 2011 and now holds a 74.65 percent stake in the carmaker. (Yonhap)