Daewoo Motor Polska positive in the face of bankruptcy

Daewoo Motor Polska (DMP), confronted with mounting debts that it is unable to pay, yesterday filed for bankruptcy. However, president of the Lublin-based van-maker Young Kab Cho decided to strike a positive note. "It does not mean that the company will stop operating or that it does not have any prospect of finding a strategic investor," he said. Despite his optimism, finding a new investor could prove difficult in the light of the failure last year of talks with two major vehicle makers, Ford of the US and Volkswagen of Germany. DMP is currently negotiating a deal with Pol-Mot Holding, under which Pol-Mot would give DMP a $20 million capital injection prior to purchasing a 75% stake in the company. However, DMP's parent company, Daewoo Motors, has not yet approved the plan. Agreeing terms with its creditors is one of the conditions DMP must fulfill before the deal can be finalized. DMP's liabilities to eight Polish banks currently total $93 million. Seven of the banks have reached agreement on debt restructuring plans. (Puls Biznesu, p. 6) A.Z.