SEOUL, Feb. 19 (Yonhap) — Financially troubled carmaker SsangYong Motor Co. said Friday it will extend the suspension of its local plant until the middle of next week due to a lack of parts from contractors.
SsangYong Motor already halted its plant in Pyeongtaek, 70 kilometers south of Seoul, on Dec. 24, Dec. 28, Feb. 3-5, Feb. 8-10, and Feb. 15-19 as its subcontractors refused to deliver parts due to outstanding payments.
The Pyeongtaek plant will be suspended from Feb. 22-24, the company said in a regulatory filing.
SsangYong said it will continue negotiations with subcontractors to resume the halted supply of auto components.
It filed for court receivership on Dec. 21 after it failed to obtain approval for the rollover of existing loans from its creditors.
SsangYong received a two-month suspension of its obligation to pay its debts as it aims to find a new investor before the court-led restructuring begins on Feb. 28.
The debt payment grace period can be extended depending on the court’s decision.
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.’