Pol-Mot to acquire 75% of Daewoo Motors Polska

Pol-Mot Holding is to acquire a 75% stake in Lublin-based van manufacturer Daewoo Motors Polska (DMP). Under the terms of the deal, Pol-mot retains the right to purchase the remaining DMP shares at some time in the future. The two sides declined to disclose the value of the transaction, but the purchase will go ahead only if a group of domestic bank-creditors agree to write off part of DMP's liabilities. In addition, the creditors are demanding that the Polish government honors a pledge given by the Finance Ministry last year to pay off a $130 million loan required to complete the launch of the DMP's new LD-100 van. DMP's total debts are estimated at nearly $100 million. According to unofficial sources, the eight financial institutions that are DMP's main creditors would agree to writing off part of its liabilities, if Pol-Mot Holding goes ahead with its investment in the company. (Gazeta Wyborcza, p. 20) A.Z.