Daewoo-FSO decided on debt to equity swap

During the General Shareholders' Meeting yesterday at Żerań-based car manufacturer, Daewoo-FSO, the Korean company agreed to increase the plant's capital from it's current zł. 2.1 billion to 4.35 billion through their decision to go ahead with a debt to equity swap. The company currently faces the issue of restructuring the debt owed to the State Treasury, which amounts to zł. 600 million. "This procedure will last for around two months," said Michał Relewicz, of the Daewoo-FSO supervisory board. Those at the meeting also decided to lay off around 1,480 employees out of the current 3,100 workforce. The management ensures it has enough capital to compensate all employees who will be forced to leave. Today the court's will also open a debt restructuring scheme for companies cooperating with Daewoo-FSO, as these debts, which amount to zł. 127 million are not guaranteed by Daewoo-FSO's assets. (Puls Biznesu, pp. 1, 4,) A.K.