SsangYong resumes plant operations after weekslong suspension over parts shortage
This file photo provided by SsangYong Motor shows the company's plant in Pyeongtaek, 70 kilometers south of Seoul. (SsangYong Motor)
Financially troubled carmaker SsangYong Motor Co. said Tuesday it has resumed the operation of its local plant after a weekslong suspension due to a glitch in its parts supply.
SsangYong Motor halted its plant in Pyeongtaek, 70 kilometers south of Seoul, for two days in December and 16 days last month as its subcontractors refused to supply 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.
The company received a two-month suspension of its obligation to pay its debts until Feb. 28 as it aims to find a new investor.
"The debt payment grace period has been extended as the talks with potential investors are under way," a SsangYong spokesman said over the phone.
SsangYong's Indian parent firm Mahindra & Mahindra Ltd. is in the process of selling its controlling stake in the Korean unit but reportedly faced difficulty in narrowing terms of the deal with a potential buyer.
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)