SSangyong to file Bankruptcy?

Some creditors of Ssangyong Motor Co, a leading auto manufacturer in South Korea has plan to file a petition with a Seoul court Wednesday to have the debt-ridden car maker liquidated.

Ssangyong has been in court-approved bankruptcy protection since February this year. Its troubles have deepened in the past two months resulted from the adverse global economic crises with hundreds of dismissed workers occupying the company's Pyeongtaek factory, which houses its sole assembly line.

Dissatisfied workers are seen striking at the compound of the Ssangyong plant in Pyeongtaek, some 70 kms south of Seoul, on Tuesday.

The creditors who mainly made up of auto parts suppliers collectively agreed that it is better to liquidate assets of Ssangyong before the company's asset value falls further tio repay their debts.The creditors plan to submit the liquidation plan to the Seoul Central District Court on Wednesday afternoon.

Ssangyong owes a combined 300 billion won ($247 million) to the parts manufacturers, and further 240 billion won to state-owned Korea Development Bank.

Ssangyong on Sunday said it had no choice but to consider liquidation, as it has failed to agree with workers union on a restructuring plan that would include cutting 37% of the company's staff and the sale of assets.

Negotiations with the worker's union last week to end the occupation failed, with management threatening to take steps toward bankruptcy unless the union accepted a compromise offer on layoffs.