HONG KONG: AILING DAEWOO GROUP LATEST скачать в хорошем качестве

HONG KONG: AILING DAEWOO GROUP LATEST

(22 Jan 2000) English/Nat South Korea's ailing Daewoo Group and its foreign creditors agreed in Hong Kong on Saturday on how to address the conglomerate's 4.84 (b) billion (US) dollars in foreign debt. The deal removes the biggest stumbling block to restructuring the nation's third-largest conglomerate. South Korea's government sees a successful reform of the conglomerate as a key to its overall economic recovery. Saturday's accord comes after six months of talks between the two sides. Creditor banks agreed to reclaim only 39 to 40 percent of the 3.7 (b) billion (US) dollar loans outstanding to the Daewoo Corp. Chairman of Korean Corporate Restructuring Committee, Oh Hogen, says a decision was taken to regard the remainder as losses. SOUNDBITE: (English) "We have agreed with the steering committee of foreign lenders of nine banks consist of nine banks who represent something in the order of 30 percent of exposure to Daewoo in principle the recovery ratio of different Daewoo companies. " SUPER CAPTION: Oh Hogen, Chairman of Korean Corporate Restructuring Committee The talks were complex because of the sheer size of the company. SOUNDBITE: (English) "Negotiations are always difficult. The biggest problem was the illusion or the facade of Korea Inc in a business group which in reality does not really exist." SUPER CAPTION: Oh Hogen, Chairman of Korean Corporate Restructuring Committee In particular, the government was concerned about the effect Daewoo's debt would have on the South Korean economy. In total, Daewoo owed 72 (b) billion (US) dollars. SOUNDBITE: (English) "The government has indirect interest in this, because Daewoo debts are very, very large and it may have a profound effect on the capital market, and the financial industry as a whole. To that extent government is very concerned. " SUPER CAPTION: Oh Hogen, Chairman of Korean Corporate Restructuring Committee In the 1990s, Daewoo expanded its domestic and overseas business with huge bank loans. Daewoo produces cars, ships, TV sets and textiles, among other products. Its debt soared from 19 (b) billion dollars in 1995 to 72 (b) billion dollars, compared to 15 (b) billion dollars in equity. During the Asian economic crisis, creditors called in short-term loans accounting for more than half of Daewoo's total borrowing. Daewoo narrowly escaped becoming South Korea's biggest bankruptcy ever last July when domestic creditors agreed to delay repayment of 5.8 (b) billion dollars in short-term debt for six months and extend 3.3 (b) billion dollars in new loans. U-S automaker General Motors Corp. and Ford Motor Co. are interested in taking over Daewoo Motor, South Korea's No. 2 carmaker. Saturday's deal is expected to expedite the negotiations. Creditors include Chase Manhattan Corp., HSBC Holdings PLC, Bank of Tokyo-Mitsubishi Ltd., Dai-Ichi Kangyo Bank Ltd., Citigroup Inc.'s Citibank unit, ABN Amro Bank NV, National Australia Bank Ltd. and Arab Bank. Restructuring is due to be completed in April. Find out more about AP Archive: http://www.aparchive.com/HowWeWork Twitter:   / ap_archive   Facebook:   / aparchives   ​​ Instagram:   / apnews   You can license this story through AP Archive: http://www.aparchive.com/metadata/you...