Court approves SsangYong receivership

SsangYong Motor Co. was given the green light by a South Korean court to go into receivership to protect it from creditors. The automaker, which is 51.3% owned by Chinese automaker SAIC Motor Corp. Ltd., was however warned that going into administration does not guarantee its future. “A revival requires the company’s own efforts, including strong restructuring and the concession of creditors. If its own effort is not enough, the revival process will be abolished,” the court said in a statement. Under the deal, SAIC will lose management control of SsangYong but will retain rights to some other assets. The court appointed Lee Yoo-il, former president of Hyundai Motor Co., and Park Young-tae, SsangYong’s director of finance planning, to manage the company. (February 6, 2009)