이미지 확대SsangYong Motor Co. under court protection on Tuesday has reopened its main Pyeongtaek plant in Gyeonggi Province after six days of closure to resume production with parts inventory.
SsangYong Motor closed its main Pyeongtaek plant on Feb. 3-5 and 8-10 as suppliers refused to supply parts for assembly of vehicles due to uncertainty of payment.
It plugged off the main plant for eight days since it filed for court receivership on Dec. 21. Some suppliers are offering to resume supplies if they can receive cash payment.
The troubled carmaker could face another shutdown and output disruption unless it can persuade suppliers.
SsangYong Motor has called an emergency meeting with 15 heads of suppliers on the same day to share the progress in its prepackaged bankruptcy plan and the parts supply situation.
The company aims to finalize talks with its parent Mahindra & Mahindra and potential investor HAAH Automotive Holdings this week and file for a prepackaged bankruptcy by Feb. 26. It has to win approval from the majority of creditors for the plan.
The plan proposes to reduce the Indian parent’s ownership from 75 percent to turn the California-based car importer the largest shareholder by issuing new shares for a 51 percent stake and management for $250 million.
State-run Korea Development Bank (KDB) earlier demanded unions to promise not to strike until business normalizes and keep collective bargaining period to three years instead of annual renewals.
By Seo Dong-cheol and Lee Ha-yeon
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]
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