Banks drive hard bargain as Daewoo-FSO seeks help

Pekao has already been approached but says it will reject any postponement of the interest payment. "We see no grounds to postpone the date because the company is doing nothing to improve its situation," said the bank's spokesperson Robert Moreń. The worst possible scenario will lead to the company's bankruptcy. FSO owes six banks more than zł.500 million. Last year the banks agreed to divide the repayment of the debts into installments. "The company does not have any money because the State Treasury, which promised during a shareholders meeting in April to increase capital, has failed to do so," claims Marek Dyżakowski, the head of the Engineers and Technicians Union in the Żerań plant. FSO hopes that by mid October Shanghai Automotive Industry Corporation and Britain's Rover group would present an acquisition proposition to save the company. (Parkiet, p. 1) A.K.