Pol-Mot Holding agrees deal with Daewoo Motor Polska

Under an agreement signed on Friday, Pol-Mot Holding is to inject $20 million into Daewoo Motor Polska (DMP) and take over part of DMP's shares. Pol-Mot Holding is the strategic investor in the Lublin-based van producer, and the deal will increase its stake in the company to 75%. The agreement will come into force by the end of July, but only if eight banks which are DMP's creditors sign a contract on the restructuring of the company's liabilities. In addition, the Polish government will have to guarantee funding for the completion of the production line for the new LD-100 van. DMP has also agreed to hand over to Pol-Mot Holding its shares in several other companies, including a majority stake in engine producer Andoria, and 50% of UK-based van producer LDV. (Gazeta Wyborcza, June 2-3 p. 24) A.Z.