A South Korean court said on Wednesday it had received an assessment that cash-strapped Ssangyong Motor Co. had the potential to be rescued, sending its shares up by the daily limit.
Samil Pricewaterhouse Coopers assessed Ssangyong's value as a going concern was 389 billion won ($302.8 million) greater than its liquidated value, the Seoul Central District Court said in a statement.
The assessment was based on survival plans outlined by the company last month, including job cuts, and the assumption that Ssangyong would raise necessary cash of 250 billion won, the court said.
News of the assessment, which will impact the court's final ruling, pushed Ssangyong shares up 15 percent by the close, far outperforming a 0.32 percent fall in the wider market .
The court said it would hold a meeting with creditors and interested parties on May 22 to solicit their opinions, and to order Ssangyong to submit new survival plans.
After that all parties will weigh whether to accept the plans and the court will make a decision.
In February, the court accepted Ssangyong's bankruptcy protection appeal, giving the carmaker, owned by China's SAIC Motor Corp, another chance after it posted four loss-making quarters on weak sales.
