Court grants creditor protection to Ssangyong E&C
SEOUL, Jan. 9 (Yonhap) -- A local court granted Ssangyong Engineering & Construction Co. protection from creditors on Thursday in a move expected to help the embattled company overcome a liquidity crunch.
The decision comes after the company filed for court receivership on Dec. 30 after its creditors decided not to extend their financial support.
South Korea's 16th-largest builder by construction capacity has been placed under debt rescheduling since June by its creditor banks after suffering a liquidity crunch. In 2004, the builder was released from a similar workout plan.
The court said it made the decision because if the company's overseas construction projects failed, it would negatively affect South Korea's credit rating.
"We will soon meet officials of creditor banks to discuss details of future steps, including the appointment of chief risk officers," Judge Lee Jong-seok of the Seoul Central District Court said.
The court also accepted the banks' opinion to have Kim Suk-joon, the chairman and CEO of the company, keep managing it.