Korean automaker Ssangyong has reportedly restarted five of its production lines at its plants in Pyeongtaek and Changwon. Earlier this month, Ssangyong was forced to enter receivership as a last ditch effort to stave off bankruptcy after failing to negotiate a deal with Shanghai Automotive Industry Corp., the Korean automaker's Chinese owners, and Korea Development Bank, its largest creditor.

Prior to those negotiations, Ssangyong was hemorrhaging money due to a 50% drop in sales, which ultimately led to the inability to make payroll and fulfill supplier contracts. At this point, Ssangyong must wait until February 9 to find out if the local court of Seoul will allow the automaker to enter bankruptcy protection proceedings. Sounds like the road will remain bumpy for Korea's fifth-largest automaker for the foreseeable future.

[Source: Gasgoo | Image: AFP/Getty]

Share This Photo X