Daewoo-FSO shareholders to discuss capital increase

Shareholders in car-maker Daewoo-FSO decided on Friday that the company should continue operating, and that the management should convene another shareholders' meeting at which they will consider the possibility of increasing the company's capital. However, no decision on additional funding can be made before Daewoo-FSO has met a number of conditions, including the restructuring of a $160 million debt to Polish banks. "It's a very serious problem. We have just made our 14th offer to the Polish banks and I hope that during our next meeting on Tuesday it will be accepted," Daewoo-FSO deputy president Janusz Wozniak told Rzeczpospolita. He added that since the company's accounts are currently frozen, it is unable to make severance payments to its dismissed employees. Wozniak said that the recent decision by shareholders to sell off part of Daewoo-FSO's real estate will improve the company's financial position. In related news, yesterday US car giant General Motors submitted an offer for the purchase of Daewoo Motor. (Rzeczpospolita, Sept 1-2, p. B1; Puls Biznesu, p. 9) A.Z.