SOUTH KOREA: DAEWOO MOTOR COMPANY DECLARED BANKRUPT скачать в хорошем качестве

SOUTH KOREA: DAEWOO MOTOR COMPANY DECLARED BANKRUPT

(8 Nov 2000) Korean/Nat XFA South Korea's third largest car manufacturer, the Daewoo Motor Company, was officially declared bankrupt on Wednesday after its labor union rejected a restructuring plan that calls for layoffs. Daewoo is the latest victim of South Korea's stepped-up campaign to restructure its debt-ridden big businesses to restore investor confidence in the economy. Another big business - the parent company of giant Hyundai Group - is under pressure to take drastic steps to cut its debt or face bankruptcy. The centerpiece of Daewoo's restructuring program is an 18 per cent layoff of the union's 18-thousand members. The union had rejected the demand, but the company says it can't wait any longer according to a spokesman for Daewoo's main creditor, Korea Development Bank. Creditors said the next expected step is to put the nation's third-largest auto firm under court receivership - a process that will install new management and freeze all debts. The auto firm was to have been officially declared bankrupt early on Wednesday after it defaulted on 87.5 billion (b) won (78 million (m) dollars) in commercial papers for two straight days. But after overnight talks with management broke down, the union called a last-minute meeting of its own to discuss its future course of action. That meeting ended without consent to the restructuring plan, which would have prevented bankruptcy. President Kim Dae-jung told the National Assembly on Wednesday that South Korea had no option but to restructure debt-ridden companies. Meanwhile, creditors banks planned to meet later on Wednesday to decide whether to roll back millions of dollars of debt coming due for Hyundai Engineering & Construction Corporation, the main affiliate of South Korea's largest conglomerate, Hyundai. Hyundai Engineering, the nation's number one builder, is putting together a self-rescue plan to woo support from creditors. Court receivership will put creditors at a disadvantage as they try to sell the troubled firm to General Motors (G-M) Corporation. G-M has been negotiating to purchase the South Korean car maker since September. Creditors worry that sale of Daewoo to G-M could be delayed because the American firm may offer a lower price. In hotly contested international bidding earlier this year, GM reportedly offered a price of between 4 billion (b) dollars and 5 billion (b) dollars. Daewoo, a former symbol of the nation's economic expansion, has been on a debt-workout program since July 1999. Although heavily indebted, it could provide an easy way for foreign auto giants to crack open South Korea's car market and serve as a stepping stone into nearby China, one of the fastest-growing car markets in Asia. Daewoo has the capacity to make 2 million vehicles a year at home and abroad. SOUNDBITE: (Korean) "Creditor banks of Daewoo Motor Co. decided not to give any more loan to ailing Daewoo Motor Co. which is in difficulty to restructure since both sides, management and union, refused to agree on current restructuring plan. Therefore, we declared Daewoo Motor's bankrupt." SUPERCAPTION: Uhm Rak-yong, head of the Korea Development Bank SOUNDBITE: (Korean) "G-M seems to decide its position after waiting for court's decision whether to give Daewoo Motor court receivership or put it under liquidation." SUPERCAPTION: Uhm Rak-yong, head of K-D-B SOUNDBITE: (Korean) SUPERCAPTION: Kim Il-sub, president of Daewoo Motor's labor union 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...