Daewoo Motor awaits approval of court receivership plan

The final step in the process of placing Daewoo Motor under court receivership is underway. The Inchon District Court held a meeting Monday of Daewoo Motor-related personnel, including Daewoo creditors, Daewoo Motor chairman Lee Jong-Dae, the carmaker`s president Lee Young-Kook and representatives of Young Wha Corp., which is in charge of an ongoing investigation of the company`s finances. Chairman Lee briefed attendees on the liquidation procedures and the results of the investigation of properties, reported credit and security rights. Based on the investigation results, a Young Wha Corp. spokesman said the liquidation procedure should continue. The company appraised the liquidation value of Daewoo Motor at 3.7 trillion won and the duration value at slightly more than that amount.

With the list of creditors finalized on Monday, Chairman Lee Jong-Dae must map out a liquidation plan within the next four months, taking into account developments in takeover negotiations with General Motors of the United States. Two or three meetings of relevant officials will be arranged after the presentation of the plan and final approval of the plan to place Daewoo Motor under court receivership is expected in June.