General Motors has announced it will give negotiators until Monday to arrive at a financial solution for its ailing GM Korea division. The company has previously offered last Friday as a deadline for GM Korea’s bankruptcy filing.
GM says the new deadline will be Monday at 5PM in South Korea, which is about 4AM Eastern time. The extension is allowing GM Korea and its union partners additional time to come to wage concessions in the country. If no deal is met by the new deadline, GM Korea says it may file for bankruptcy protection.
GM Korea says it is facing a $600 million shortfall after years of losses in the country. As such, the company is seeking both concessions from the union and financial support from the Korea Development Bank, which has an equity stake in GM Korea.
All parties have been in talks since February, when GM Korea announced it will close its Gunsan assembly plant in the country.