ID :
53062
Tue, 03/31/2009 - 10:43
Auther :
Shortlink :
https://www.oananews.org//node/53062
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Ssangyong Motor shareholders to file damages lawsuit
SEOUL, March 31 (Yonhap) -- A group of minority shareholders of troubled Ssangyong Motor Co. will file a damages lawsuit against former executives and the company's parent Shanghai Automotive Industry Corp. (SAIC) for their alleged mismanagement, Ssangyong's labor union said Tuesday.
Buffeted by tumbling sales and dwindling cash reserves, Ssangyong was placed
under court receivership last month after SAIC, China's largest automaker,
refused to bail it out.
A total of 1,781 small shareholders will lodge the lawsuit with a Seoul court to
seek 1 billion won (US$712,530) in compensation for damages from the alleged
mismanagement by SAIC management and former Ssangyong executives, the union said.
Under the court receivership, Ssangyong Motor is required to meet its creditors
and a bankruptcy judge on May 22 to review its plan to turn the company around.
If the turnaround plan is deemed unfeasible, the carmaker will be liquidated.
Buffeted by tumbling sales and dwindling cash reserves, Ssangyong was placed
under court receivership last month after SAIC, China's largest automaker,
refused to bail it out.
A total of 1,781 small shareholders will lodge the lawsuit with a Seoul court to
seek 1 billion won (US$712,530) in compensation for damages from the alleged
mismanagement by SAIC management and former Ssangyong executives, the union said.
Under the court receivership, Ssangyong Motor is required to meet its creditors
and a bankruptcy judge on May 22 to review its plan to turn the company around.
If the turnaround plan is deemed unfeasible, the carmaker will be liquidated.
