Seoul newspapers are reporting sources close to the creditors involved in talks with GM over bankrupt Daewoo Motor’s assets, as optimistic that long drawn out negotiations are finally concluding with an agreed sale.
The reports say that an agreement should be reached by the end of the month and will be structured close to the terms of last September’s Memorandum of Understanding between GM and Daewoo Motor’s major creditors.
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An AFX news agency report today says that a ‘debt for equity’ deal with the creditors involving US$1.2 billion worth of stock in the new GM-owned company has been agreed. The AFX report quotes as source a news item in Tuesday’s edition of the Korea Economic Daily (available late Monday).
Industry observers aren’t holding their breath and note that substantive discussions between GM and the labour unions – who’ve sounded hostile to a GM takeover – have yet to take place.
