2nd Application after January 2009
SsangYong Motor applied for corporate rehabilitation on Dec. 21 after having failed to repay 165 billion won to financial institutions due to its 15-quarter red ink. This is its second rehabilitation application after January 2009.
The automaker applied for autonomous restructuring support, too. This program is for the court to postpone rehab initiation by up to three months with creditors’ consent. The court accepted the application and the automaker can have talks with creditors for the time being while doing normal business activities.
The failed repayments are divided into 90 billion won to Industrial Bank of Korea, 15 billion won to Woori Bank and 60 billion won to foreign financial institutions.
The carmaker showed a capital impairment of no less than 86.9 percent in the third quarter of this year. Largest shareholder Mahindra & Mahindra is trying to dispose of the company but no one is showing interest.