S Korean court says Ssangyong Motor's survival viable

Special
Report: Global Financial Crisis

SEOUL, May 6 (Xinhua) -- A South Korean court said Wednesday that Ssangyong
Motor Co.'s survival is valuable, citing audit results by a local accounting
firm.

The audit results by the accounting firm Samjong KPMG Inc. were favorable
to the survival of Ssangyong Motor Co. over its liquidation, which raised hopes
on the company's viability, according to the Seoul Central District Court.

The value of Ssangyong, which has been under bankruptcy protection since
February, came in at 1.32 trillion won (1.03 billion U.S. dollars), larger than
the 938.6 billion won (735 million U.S. dollars) to be gained if liquidated,
according to the court.

Creditors of Ssangyong will hold a meeting later in the month to decide on
whether to save or liquidate the automaker.

Ssangyong, as part of its turnaround bid, announced to cut 36 percent of
its workforce, or 2,646 jobs.

Ssangyong, a former affiliate of Shanghai Automotive Industry Corp. (SAIC)
was abandoned by its parent company in January as SAIC decided to stop making
any major effort to save its affiliate.

SAIC, which still owns a 51-percent stake in Ssangyong, relinquished its
control in the company as it went under the bankruptcy protection.