State Treasury takes over Daewoo-FSO

As part of another step in the process of restructuring ailing car producer Daewoo FSO, the joint venture agreement signed in 1995 between the plant and Korean investor Daewoo Motor Company (DMC) was terminated. "We have also decided that all other agreements are no longer in force. With the exception of the licensing deal and for delivery of parts for the production of the Matiz and Lanos models," said Deputy Treasury Minister Ignacy Bochenek. As part of the agreement, the State Treasury has withdrawn from its plans to enforce fines for the unexecuted investment obligations of DMC. In exchange, the Korean investor will hand over its stake at a nominal price. These changes lead to the take over of full control over the car manufacturer by the State Treasury. During the coming shareholders meeting on December 19-20 the board is to decide upon another swap of debt into equity which will be acquired by DMC. This will be the final move to get rid of all liabilities owed to DMC. (Puls Biznesu, p. 6) A.K.