Nowak confirms Daewoo-FSO debt restructuring deal likely on Monday

Deputy Economy Minister Edward Nowak has confirmed that car-maker Daewoo-FSO will next week sign an agreement with its creditors on extending the deadline for the repayment of a $160 million debt. According to Nowak, "We hope the agreement will be signed on Monday." He added that the debt restructuring would enable the company to function normally and would be helpful when negotiating an understanding with its Korean creditors. "We have established the general conditions of the agreement, and now we have to put them down on paper," Nowak said. Under the agreement, Daewoo-FSO's creditor banks will stop all legal action against the company and unfreeze its accounts. The debt repayment will be postponed until the end of the year, with the next government left to search for a new strategic investor. Sources suggest that Korean car manufacturer Hyundai may be interested in taking part in such talks. (Gazeta Wyborcza, p. 21; Prawo i Gospodarka, p. 5; Rzeczpospolita, p. B3) M.T.K.