Ford’s pullout from its planned purchase of Daewoo Motor leaves the company in a dire situation. Creditors will be looking to find a new buyer, but it is a buyers market now. New bidders will likely take a cautious approach after Ford’s unexpected rejection emerged during the due diligence process. Indeed, a break-up of Daewoo Motors and its subsidiaries cannot be ruled out as the creditors become increasingly anxious to see mammoth debts repaid.
In the report, www.just-auto.com/features_detail.asp?art=282, just-auto.com Managing Editor David Leggett said: “Daewoo Motor is in an unpleasant position, with the creditors trying to offload the whole thing and failing in the case of Ford. They will now be looking at other possibilities and if no new bidder emerges for the whole package, selling parts of the operation becomes a more likely possibility. As the whole thing drags on, the workers are likely to become increasingly agitated.”
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To read the full just-auto background and analysis to the Daewoo sale, go to: www.just-auto.com/features_detail.asp?art=282
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