Shareholders meeting to decide fate of Daewoo-FSO
Shareholders in Daewoo-FSO will meet on Friday to decide the future of the
company, against a background of mounting debt and falling sales. Last year
the company's losses reached zl.1 billion. It is currently in debt to its
Korean owner and the Korean banks to the tune of almost $1 billion, and it
owes Polish banks $160 million. Sales of Daewoo cars are falling in Poland,
and promises that the Daewoo-FSO plant would become a major center for the
export of cars to Western Europe have not been realized. In the first half
of the year Daewoo-FSO sold just 4,600 cars abroad, and only a small number
of these were exported to Western Europe. Analysts are suggesting that the
company's shareholders may attempt to stave off bankruptcy by restructuring
zl.800 million of the debt it owes to its parent company in Korea. (Gazeta
Wyborcza, p. 14) P.W.
