SEOUL (AFP) — Ailing South Korean automaker Ssangyong Motor, which is seeking court receivership to avoid bankruptcy, announced it has suspended production because of a lack of parts.

Operations at the company's only plant at Pyeongtak, 70 kilometres (43 miles) south of Seoul, will stop indefinitely, the Chinese-owned firm said.

A Ssangyong spokeswoman told AFP the supply of auto parts would likely resume only after a local court gives a final ruling on the firm's application for protection from creditors.

The Seoul Central District Court on Monday froze Ssangyong's debts and obligations and banned asset sales, saying it would decide within one month whether to accept its request for receivership.

For months South Korea's smallest automaker had been pleading with its parent, China's Shanghai Automotive Industry Corp (SAIC), for a cash injection to help it cope with dwindling sales.

Unions said Monday they were suspending strike plans and were willing to discuss a turnaround plan.

Shanghai Automotive acquired Ssangyong in 2004. Ssangyong's outstanding bank loans are estimated at 300 billion won (225 million dollars).

Ssangyong has fallen into financial crisis amid slow auto sales and a dearth of operating funds from its parent firm. The company expects to post a net loss of more than 100 billion won (76 million dollars) for last year.