`GM DAEWOO`, Will Restart Newly Next Month

Daewoo Motor will be changed into ‘GM Daewoo’ next month after 37 months of a workout starting from August 1999.

Being in reorganization, Daewoo Motor submitted a prepackaged plan to Incheon District Court on September 13. On September 30, Daewoo creditors and affiliates will determine the plan through the mediation of the court. The prepackaged plan is a process which determines a repayment condition of bonds according to the business scale of creditors and collaterals. In this process, 76% of bonds will turn to just the paper scraps.

The existing Daewoo Motor is divided into 5 companies such as △GM Daewoo △Bupeyong Daewoo Motor △Busan Daewoo Bus △Gunsan Daewoo Commercial Vehicle △Daewoo Motor including overseas corporations.

Creditors who are in trouble with financial institutes for the bonds distribution rate, will hold a board of directors and will adjust a final decision on September 24. Lee Yong-Gun, an assistant director of creditors’ association said “Most of creditors are not satisfied with this plan. So, it is difficult to unify actions because they have a different understanding.”

While bonds creditors hold are approx. 2% of the total creditors, an approval standard of the related parties meeting is 75%(Secured bonds). Therefore, the plan will be approved by the court, as far as there is any projecting variable. Officials of Korea Development Bank said “The rapid restart of GM Daewoo Motor will call forth response in people’s profits.”

Despite of the determination of the plan, it is unknown that GM Daewoo will be operated directly on October 1. Gim Jeong-Su, a vice-president designator of GM Daewoo said “We can start the corporation legally, but will consider carefully because of various civil applications.”

David N.Reilly, the president designator of GM Daewoo has resided in Bupyeong factory for 9 months and prepared the new establishment of the GM Daewoo. The company will recruit employees, adjust the work area and determine budgets. The production plan for a middle sized new car will be soon completed.

Vice-president Gim said “When the new corporation will be restarted in October, Corporate Identity(CI), management strategy and vision will be disclosed. “The competition of the domestic market is from now on.”

Rae-Jeong Park ecopark@donga.com