May 6, 2009

Auditors say Ssangyong should be saved

A South Korean bankruptcy court said based on an auditor's report, saving Ssangyong Motor Co. was preferable to a liquidation sale.

Auditors said the value of salvaging the company was $1.03 billion, compared to a liquidation value of $730 million, Yonhap news agency reported Wednesday. However, auditors said the company's survival hinged on cutting 36 percent of the automaker's workforce.

Ssangyong Motor's continued existence is valuable, a court official said. But rescue proceedings will be scrapped if conditions for restructuring and new loans aren't met.

Creditors have scheduled a meeting for May 22 to decide whether or not to proceed with rescuing the company, which said it would go ahead with plans to cut 2,646 jobs or 36 percent of its personnel.