Progress made in NSC talks, Rover delivers ultimatum

After yesterday's negotiations between government representatives, the Daewoo Motor Co and its Korean creditors, the parties agreed that they will seek a new investor for the New Small Company (NSC) and will simultaneously negotiate with them the structure of the NSC. The negotiations, which started on Monday, have still to cover many difficult issues and questions. The situation has taken a dramatic turn as MG Rover delivered an ultimatum: either the Korean side will accept them entering the NSC immediately, or they will withdraw from the investment. Earlier the Koreans first wanted to create the NSC and then negotiate with a potential investor. "What they were also suggesting was that a debt-free NSC will not need a new investor at all," said one of the negotiators. Currently it is unknown whether Rover is to become an investor in the NSC, but at present no other investor has been named, nor is one likely to be found in the foreseeable future. (Puls Biznesu, p. 3) A.Z.