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Ssangyong Supplier Group Seeks Carmaker`s Bankrupcy

Posted August. 06, 2009 08:24,   


A group of 600 suppliers to the troubled Ssangyong Motor filed for early liquidation of the carmaker yesterday with the Seoul Central District Court.

Choi Byeong-hun, general director of the group, said, “Due to the illegal occupation by unionized workers, around 200,000 employees of Ssangyong’s suppliers have remained idle. We suggest a written application of early liquidation to let the troubled carmaker fall into bankruptcy and come up with effective measures.”

“It will take more than six months to normalize the carmaker. If the workout program is also not implemented as quickly as possible, a number of suppliers will go under. If the standoff is resolved within a few days and the carmaker asks us to withdraw our application, we’ll carefully consider whether to do so.”

The court, however, is highly likely to wait until Sept. 15, the deadline for Ssangyong management to submit a self-rescue plan. It could even cancel the workout procedure even before the deadline if the company’s going-concern value falls far below liquidation value.

Police used three large cranes and three containers and dispatched 60 commandoes to raid the Ssangyong plant from 6 a.m., yesterday. An additional 20 commandoes took the first paint workshop.

The second paint workshop, welfare building and plant for parts painting remained occupied by unionized workers.

Before the inauguration ceremony for the Daejeon Police Agency, National Police Agency chief Kang Hee-rak said, “We have not set a deadline for operations to dispel unionized workers. We’ll take our time to secure the second paint workshop and welfare building that are being occupied by unionized workers.”

Gyeonggi Province’s police commissioner Jo Hyeon-oh also said, “The second paint workshop is dangerous since it has 8,400 liters of thinner. If union members voluntarily leave the plant by the end of today, we’ll take good care of them.”

Justice Minister Kim Kyung-han, who visited Ssangyong’s Pyeongtaek plant yesterday, said, “As the head of the country’s top law enforcement organization, I visited this place to better understand what’s been going on here. If the striking workers voluntarily end their sit-in demonstration, we’ll take good care of them.”

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