Ssangyong Engineering and Construction filed for court receivership on Monday after struggling with heavy debts. Over the last 10 months, the building firm had been in a debt workout program with its creditor banks, which refused to provide additional credit lines.
A Ssangyong spokesman said this led to a serious liquidity crisis. "We ended up filing for court receivership in order to minimize the damage for the domestic industry and our subcontractors."
Ssangyong is currently involved in 16 projects in eight countries overseas at a total construction cost of W3 trillion (US$1=W1,055) and in 150 projects in Korea.