Korea Daewoo Creditors To Choose New Negotiator By Oct. 20

By BridgeNews South Korean creditors of Daewoo Motor will request General Motors-Fiat and DaimlerChrysler-Hyundai to resubmit bids within 10 days and choose a primary negotiator by Oct. 20 to proceed with the sale of the troubled automaker, said state-run Korea Development Bank (KDB), a major creditor, Sept. 15. Meanwhile, Uhm Rak-Young, head of KDB, told reporters that creditors are also considering selling Daewoo first and then settle payment later to expedite the process and prevent further deterioration of Daewoo's asset quality. For now, Daewoo's creditors will not be extending additional funds to the company but have agreed to provide financial assistance if needed in the future. Creditors of Daewoo held an emergency meeting this morning to press ahead with the sale of the auto market after Ford withdrew its bid on Friday. The news of the breakdown in negotiations with Ford is hammering both the stock and the foreign exchange market with the Korea Stock Price Index at levels not seen since March 1999.

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