Banks agree extension for Daewoo-FSO debt repayment

Polish creditor banks of Daewoo-FSO have agreed to extend until mid-December the deadline for the car-maker to repay its debts. Daewoo-FSO owes a total o f zl.591 million to Bank Handlowy, Pekao S.A., BIG Bank Gdanski, Kredyt Bank , ING Slaski and BPH. The negotiations on the deadline extension have been d ragging on for four months, and according to Gazeta Wyborcza it took the int ervention of Jerzy Buzek's government to help clear the situation up. Zofia Duran, Daewoo-FSO's financial director, said the company will continue to pa y interest at the same level until December, with the payments, which she es timates run to several million zloty, covered by the sale of real estate. Un der the terms of the agreement with the banks, Daewoo-FSO can count on a fur ther deadline extension if it succeeds in finding a new backer. Former deput y Prime Minister Janusz Steinhoff identified Hyundai Motors of Korea as a po tential investor, and invited the company to take part in talks. However, it is unclear whether Leszek Miller's government will follow a similar policy. (Gazeta Wyborcza, Oct. 20-21, p. 19) M.T.K.