Daewoo and Rover haggle over the future of NSC

The creditors of ailing car-maker Daewoo-FSO are close to an agreement on the division of shares in the New Small Company (NSC) to be created from the assets of Daewoo-FSO. However, there are some doubts about the planned entry of Britain's MG Rover as an investor in the NSC. Daewoo Motor Co. of South Korea, a shareholder in Daewoo-FSO, is reportedly hesitant to allow Rover in, claiming that a debt-free NSC will not need an investor at all. Me anwhile, the Polish side's stance is: no Rover, no NSC. The problem is that Rover itself is also haggling, seeking to create a joint-venture in NSC rather than acquire a stake in it and demanding government guarantees. These could be difficult to obtain, considering that the government is currently working on a major guarantee scheme for the shipyard industry (Puls Biznesu, p. 6) T.J.