Creditors eye Daewoo stake

Creditors eye Daewoo stake

SEOUL (Reuters): South Korean creditors of Daewoo Motor said on Friday they could take a stake in Daewoo if General Motors agreed to take over the bankrupt carmaker, but they insisted the controversial Pupyong plant be part of the deal.

"It is possible that creditors could take part in capitalization of Daewoo Motor if GM agrees to buy the carmaker," said a creditor bank official close to negotiations with GM.

"But it is too early to talk about concrete figures because we have yet to agree with GM," he added, denying a news report that GM would take a 51 percent stake in Daewoo.

The Maeil Business Newspaper reported on Friday that creditors would take the remaining 49 percent.

GM officials declined to comment.

U.S. auto giant Ford offered a non-binding 7.7 trillion won for Daewoo Motor last year before abruptly walking away from negotiations.

Local media have reported GM and partner Fiat SpA in May offered about one-tenth that amount, or 760 billion won ($594 million) for five of Daewoo's 16 factories, including one each in Egypt, India and Vietnam.