Negotiations
between General Motors and creditors of bankrupt Daewoo Motor have ground to
a halt and could fail permanently, the New York Times reported today, citing
sources close to the talks.
Quoting a GM spokesman, the newspaper said that the company’s negotiating
team, led by the top GM executive in South Korea and Japan, Alan Perriton, is
waiting for a response to its offer. Meanwhile, Daewoo officials are leaking
details of the talks to the Korean media.
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The New York Times said that those reports say that GM has offered much less
than Daewoo creditors want.
A Korean newspaper said yesterday that GM had offered $US588 million for Daewoo
Motor assets but the offer did not include the ageing and strike-plagued Pupyong
plant.
The New York Times said that the GM officials are frustrated at the delays
but refuse to disclose details of their offer, saying they had agreed not to
discuss the negotiations.
A memorandum of understanding, which GM concluded on May 29 with the government-owned
Korea Development Bank, the lead creditor for Daewoo Motor, called for both
sides to conclude a deal “as rapidly as possible” for GM finally to
take over Daewoo, the newspaper said.
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