New proposal made to protect Daewoo-FSO creditors

The government and MG Rover are trying to persuade the banks to accept a new proposal aimed at better protection of creditors' interests, after the birth of a new manufacturing company, the New Small Company (NSC), created on the basis of Daewoo-FSO. MG Rover representatives believe that there is little t ime left to conclude the negotiations, but that a compromise could be reache d within several days. "We support the government's proposal that Daewoo-FSO 's property will not be owned by NSC, but leased. This will protect the cre ditors' interests," MG Rover's vice-president Nick Stephenson said laconical ly. "We are talking about machines and equipment that are the company's most valuable goods. In this manner, the creditors will be able to fully control their liabilities," explained Daewoo-FSO's vice-president Janusz Woźniak. Th e next phase of talks with the banks has been planned for July 11. (Puls Biz nesu, p. 5) K.Z.