January 22, 2021 13:07
Troubled SUV maker Ssangyong told its labor union on Thursday it cannot pay the wages of 4,800 workers this month.
Ssangyong's liquidity shortage is so bad that some parts suppliers are demanding to be paid in cash instead of promissory notes. The automaker decided to meet with the union on Friday over how much of the wages to withhold.
"Anywhere from a month's to several months' of wages could be delayed," a staffer said.
Ssangyong owner Mahindra is in the final stages of talks with U.S. automobile distributor HAAH Holdings over a sale. Since applying for court receivership in December, Ssangyong has been restructuring its operations.
The debt-ridden automaker needs to wrap up sales talks by Feb. 28 or face court receivership.
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