Daewoo 2001 losses down, but slow progress on its future

The losses of Daewoo-FSO in 2001 stood at zl. 790 million, down from zl. 2.028 billion in 2000, said the Economy Ministry. The Ministry declared that the company has a total debt of zl. 600 million to Polish banks and owes zl. 3.6 billion to foreign creditors. Daewoo-FSO has no means of paying this debt. However, a rescue plan is being prepared, whereby a new company called the New Small Company would be created out of the old Daewoo-FSO. The British car concern MG Rover, has announced that it is considering investing in the new venture. "Rover will enter Poland if the State Treasury and Polish banks can secure a majority stake in the company," said Deputy Economy Minister Maciej Lesny. At present only 9.19% of the shares are owned by the State Treasury, while 88.67% belongs to the Korean owner Daewoo Motor. (Parkiet, p. 9) A.D.