Creditors seek rescue package for troubled Ssangyong Motor

SEOUL, Jan. 11 (Yonhap) -- Ssangyong Motor Co., a local unit of China's Shanghai
Automotive Industry Corp., is expected to stand alone until next month, local
industry sources said Sunday, as its creditors are moving to map out a financial
bailout package for the beleaguered carmaker.
Ssangyong Motor, the nation's fifth-largest automaker, filed for court protection
Friday at a Seoul court after its parent company, the government and its
creditors failed to agree on a bail-out plan for the troubled automaker, which
reported four straight quarterly losses due to falling vehicle sales.
The Korea Development Bank (KDB), the main creditor of the carmaker, is planning
to draw up a financial support package in anticipation of the court's approval of
the protection request, the source said.
The court will decide within four weeks on whether to approve the court
receivership and provide a chance for a turnaround for Ssangyong or to liquidate
the company.
The sources said the KDB has determined Ssangyong can stand alone until early
February as its bank deposits reached 38 billion won (US$29 million) and the
company also expects to receive payments for its vehicle sales overseas.
"The actual amount of Ssangyang's deposit can be reduced depending on the volume
of its outstanding debts, but the automaker can support itself until early
February, given its expected collection of export bills," said an official of the
KDB.
"Creditors will make a decision on the support measure after it studies the scale
of the needed money by the time the court releases its decision," the official
said.
Ssangyong owes a total of 600 billion won to creditors, including 240 billion won
to the KDB, and it also has 150 billion won of debts maturing in April, according
to a market analysis.
pbr@yna.co.kr
(END)