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.