By Park Si-soo
Staff Reporter

Creditors filed for the liquidation of troubled Ssangyong Motor at the Seoul Central District Court, Wednesday, at a time when police all but drove a group of fired union workers out of its Pyeongtaek plant, where they are holding a sit-in protest.

Choi Myung-hoon, the spokesman for the creditors, said, “With the standoff continuing, more than 1,900 part suppliers are exposed to bankruptcy. So we have no choice but to liquidate the company to recoup 300 billion won ($245 million).” But he left open the possibility of withdrawing the filing.

Police had taken over all but the paint plant Wednesday evening, which the protestors threatened to set on fire. The paint shop is full of flammable material.

The court is unlikely to accept the liquidation request, according to officials there, rather it will stick to its Sept. 15 deadline for management to submit a self-rescue plan to avoid liquidation. This makes the creditors’ move more a pressure tactic targeting the protestors. ``The filing is meaningful as creditors have tentatively concluded that the firm has little chance of surviving, whatever the rescue plan may be,’’ a judge at the Seoul court said.

Bloody Clash

The Ssangyong plant was turned into a ``battleground’’ as police stormed into three buildings occupied by hundreds of fired workers for more than two months to protest a massive layoff.

At 9:50 a.m., about 20 special police units descended from a helicopter-borne steel container, landed on the rooftop of a building and then stormed into the buildings one by one. Some 200 heavily armed riot police followed in after reaching the roof by ladders.

On the rooftop, police helicopters sprayed liquid tear gas at the workers who were standing vigil with steel pipes, firebombs, cinder blocks and slingshots.

By noon, police had seized all buildings but the paint shop, the last one occupied by nearly 620 protesters. About 4,000 police officers including the special squad took part in the operation.

During the operation, around 50 people were injured including three protesters who fell from the roof while clashing with police, officers said.

Police are cautious about entering the last “fortress” where the flammable material is stored.

``It will take time for police to seize the building,’’ National Police Agency chief Kang Hee-rak said. He hopes that union and management will reach a last-minute compromise. The violent crackdown paused in the evening. Police will raid the last ``shelter’’ early Thursday morning.

Union spokesman Lee Chang-kun said that a police assault on the paint shop would be deadly. ``We will fight even at the risk of our own lives,’’ he said.

No Exit?

Regardless of the court’s decision, the worst-case scenario of liquidating the firm is gaining momentum as neither the government nor lenders is willing to rescue Ssangyong.

The company’s management said once police retake the plant, it will resume production within 10 days at the latest and raise its production capacity to 5,500 vehicles a month as early as possible.

``Once production resumes, we will go to all lengths to revive the company,’’ a Ssangyong executive said. ``We will first focus on selling vehicles in stock before seeking credit.’’

But creditors are quite skeptical.

Ssangyong sustained $258 million in lost production during the strike. Also, many of its subcontractors have suspended their business, face bankruptcy or have already gone bankrupt.

pss@koreatimes.co.kr