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`22 Workout Companies Taken Care of Within the Week`

Posted August. 10, 2001 08:24,   


The fate of 22 companies among the 35 workout companies (Corporate Improvement Project) will be decided during this week.

An official of the Director of Finances stated on August 9, ``The performance results of the workout companies must be submitted to creditor banks by August 10. If we can proceed with the decision-making process quickly, the final decision will be made at the end of the week.``

``Companies to be dissolved are primarily the ones with insufficient funds to operate their businesses. In cases like these, a new capital fund drive is necessary to persuade creditors. Since creditors are not likely to be persuaded, they will probably be dissolved by bankruptcy and such.`` explained the official.

Vice Chairman and Minister of Finance and Economic Committee, Chin Nyum, announced at a press conference on August 8, ``We will make the final decision by August 14.``

Reports from the workout department office indicate that, of the 35 companies, decisions on thirteen companies have already been finalized: Ñ 3 (Shin Woo, Diners Card, etc.) for structural readjustment through the CRV, Ñ 2 dissolved including Dae Woo Heavy Industries, Ñ 5 for self-regulation, Ñ 1 for successful workout, 2 for mergers and partitioning.

There is a high possibility that a `company partition plan` that divides according to weak divisions and healthy assets will be applied to 22 companies. Furthermore, companies that have made unsatisfactory structural adjustments are showing signs of nervousness while companies with high recovery potential are welcoming the structural readjustments, each showing different reactions to the measures.

Kim Seung-Ryun srkim@donga.com