Court grants bankruptcy protection to Ssangyong
Seoul - A Seoul court granted bankruptcy protection to Ssangyong Motor Co on Friday, giving the ailing South Korean automaker another chance to turn itself around.
The decision deprives majority stakeholder Shanghai Automotive Industry Corp of management control of the smallest of South Korea's five carmakers. The Chinese company will, however, keep its 51-per-cent share while Ssangyong is under court management.
Two court-appointed managers are to draw up a plan to save Ssangyong, which reported losses in the past four quarters after plunging sales.
Ssangyong, which suffered a sales drop in 2008 of almost 30 per cent to 92,665 units, temporarily halted production in January.
After filing for creditor protection, the company's debt and obligations were frozen by court order. (dpa)
