SsangYong Motor in dire straits, files for bankruptcy

SsangYong Motor in dire straits, files for bankruptcy

SsangYong Motor has filed for bankruptcy after it failed to make a loan repayment of about 60 billion won (RM219.8 million), Reuters reports. The ailing South Korean automaker said via a statement that the move is expected to cause a massive disruption in its operations.

The company said it had filed for court receivership after being unable to reach an agreement to extend its loan repayment deadlines with foreign banks. SsangYong owes Bank of America about 30 billion won (RM110 million), JP Morgan Chase 20 billion won (RM73.2 million) and BNP Paribas 10 billion won (RM36.6 million).

Mahindra & Mahindra, which holds a 74.65% stake in SsangYong, had said last week that the total repayment was due on December 14. The Indian automaker saved SsangYong from insolvency with a deal in 2010, but has had no success in turning things around. It had previously said it would be pumping US$423 million (RM1.7 billion) into SsangYong to make it profitable by 2022, but Covid-19 effectively ended that plan.

SsangYong Motor in dire straits, files for bankruptcy

In April, Mahindra said it would no longer invest in SsangYong, and had asked the Korean brand to look elsewhere for funding. By June, the Indian company said it was willing to let go of its ownership stake and was looking for a buyer for SsangYong.

Sales have been dwindling for the Korean carmaker. It sold only 96,825 vehicles between January to November, 20% less than the corresponding period in 2019. In its filing, the company said it had applied for an autonomous restructuring support programme, which gives it up to three months to negotiate with stakeholders – including creditors – to resolve issues.

At the start of 2020, SsangYong had planned to begin selling a fully electric version of its Korando SUV in Europe. The electric model was due to be displayed at this year’s Geneva Motor Show, which became a casualty of the pandemic.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.



  • Celup King on Dec 22, 2020 at 4:33 pm

    Another India owned brand facing doom.

    Like or Dislike: Thumb up 13 Thumb down 4
    • Korean Fan on Dec 23, 2020 at 6:51 pm

      ssangyong the perfect korea fit for geely chinas,

      Like or Dislike: Thumb up 2 Thumb down 3
    • Indian on Dec 30, 2020 at 1:15 pm

      Indian brands are doing goods and expanding across the world. This is a business. Unlike Malaysia selling companies to china,

      Like or Dislike: Thumb up 1 Thumb down 0
  • Mr Fakta on Dec 22, 2020 at 4:56 pm

    Ofcourse, their design is so damn ugly, a typical Korean design in the 90s. Just like the old Veloster.

    Like or Dislike: Thumb up 9 Thumb down 1
    • suomynona on Dec 23, 2020 at 12:08 am

      Nothing wrong with Hyundai/Kia, more like a reputation of Daewoo. Name so tarnished, it exported overseas as a Chevy, Holden, Opel, etc. Anything but the Daewoo badge,

      All the Cruze, Aveos & Captivas we see on the road, all Daewoo’s work

      Like or Dislike: Thumb up 6 Thumb down 1
  • weird ssangyong didnt join hyundai kia back then

    Like or Dislike: Thumb up 2 Thumb down 0
  • “..30 billion won (RM110 billion),”
    It’s million in RM

    Like or Dislike: Thumb up 1 Thumb down 1
  • Azeezjibkor on Dec 23, 2020 at 1:53 pm

    Someone just bury this brand..Buy lock stock barrel machines only.Start another brand called Lousang…(CNY yee sang)sure fatt tat.(prosperous like Elon Musk)

    Like or Dislike: Thumb up 1 Thumb down 1
  • Sundarajoo viran on Dec 23, 2020 at 9:59 pm

    I think Korean government should offer assistant to rescue this aligning company a for one year financial support plan and to restore many job worker from retrenchment.

    Like or Dislike: Thumb up 3 Thumb down 1

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