Ssangyong Turnaround Plan Rejected by Foreign Bondholders

Foreign creditors have rejected the turnaround plan that Ssangyong Motor Co. Ltd. submitted to the Seoul Central Court.

The court likely will approve the plan anyway, many analysts believe, as liquidation of South Korea’s smallest auto maker would severely impact the local economy in the region of Pyongtaek, where its assembly plant and research and development center are located, and the southern coast city of Changwon, home to an engine plant and development center.

The court issued a statement Friday saying it will announce its decision on Dec. 17.

Ssangyong has been under court protection since February.

The Ssangyong turnaround plan is little changed from a proposal submitted to the court in November, which the foreign bondholders also rejected.