SsangYong Motor released from court receivership

SsangYong Motor was released from court receivership Friday, a year and six months after it was put under receivership as its parent company failed to find a new investor.

The entrance to SsangYong Motor's factory in Pyeongtaek, Gyeonggi on May 13, 2022. [YONHAP]

SsangYong Motor was released from court receivership Friday, a year and six months after it was put under receivership as its parent company failed to find a new investor.

The Seoul Bankruptcy Court decided to close SsangYong Motor’s corporate rehabilitation procedures Friday after the Fair Trade Commission approved KG Group’s acquisition of the company for 950 billion won ($708 million) in August.

The Seoul Bankruptcy Court ruled that there is no hindrance to the implementation of the rehabilitation plan as SsangYong Motor has completed the repayment of most of the rehabilitation security rights and claims, worth about 351.7 billion won, and currently has about 290.7 billion won of operating funds.

In addition, an improvement in sales with the introduction of the new Torres line launched this year and the formation of a new board of directors also had a positive impact.

SsangYong Motor has been under court receivership since April 2021 as its parent company, Mahindra & Mahinda, failed to find new investors amid the pandemic and financial difficulties.

BY LIM JEONG-WON [lim.jeongwon@joongang.co.kr]