31

Dec

Ssangyong faces liquidation if SAIC doesn’t prop up ailing automaker

Posted by galardo  Published in Other

Things are looking tremendous at Korea’s Ssangyong Motors, which, as you might recall, was unable to journey payroll last week due to a total lack of cash on hand. The low tale continues this week as Ssangyong’s largest creditor, Korea Development Bank (KDB), suggests that it will simply liquidate the automaker if Shanghai Automotive Industries China, otherwise known as SAIC, isn’t willing to prop up its ailing subsidiary. As of last week, SAIC had said that it didn’t intend on bailing out Ssangyong.

KDB is looking for 120 million won in cash from SAIC, along with another 200 million won in guarantees for loans. Those two bits of financial aid total about $249 the multitude in U.S. funds. If SAIC refuses, KDB says it will not consider making any more loans to Ssangyong. What that means for displaced workers at the Korean automaker we don’t know, but it doesn’t sound good.

[Source: Gasgoo.com]

Source: feedproxy.google.com