Daewoo files for court receivership

Daewoo Motor filed an application for court receivership with the Inchon District Court Friday afternoon. The court will accordingly take a property preservative measure and freeze all of the carmaker¡¯s assets and debts next week at the earliest. The court is scheduled to decide on whether to start the procedure for court receivership for Daewoo next month.

Daewoo Motor¡¯s Pupyong plant ceased operations for the second consecutive day Friday as subcontractors refused to supply auto parts and the Kunsan plant also scaled back its operations. A Daewoo Motor official said that when the company is placed under court receivership and the court takes the property preservative measure, the carmaker will be able to discount bills normally and subcontractors will supply parts. In this case, operations at its plants will return to normal by next week, he said.

Meanwhile, about 400 subcontractor presidents gathered at the Pupyong plant in the afternoon and held an emergency meeting on ways to keep Daewoo Motor¡¯s subcontractors afloat. At the meeting, they urged the court to put the automaker under court receivership as soon as possible and demanded a raise in the special guarantee ceiling for subcontractors.