August 17, 1999 
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| August 17, 1999 | atimes.com | |
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| The Koreas Daewoo signs away all but six units SEOUL - Daewoo Group has signed a restructuring plan with creditors that calls for the virtual dismantling of the nation's second-largest conglomerate. Daewoo, which had 41 affiliates at the end of last year, will be left only with four auto making units and two divisions supporting auto-related business under the revised arrangement. Creditors will separate Daewoo Securities, Seoul Investment Trust, Daewoo Electronics, the PC division of Daewoo Telecom and the shipbuilding unit of Daewoo Heavy Industries from the parent group for sell-offs. Keangnam Enterprise, a construction firm specializing in residential buildings, will also split from the conglomerate and be sold. Daewoo Development will be merged with Daewoo Motor and later be sold. The construction sector of Daewoo Corp and the machinery division of Daewoo Heavy Industries will have to be sold if the group's debt-to-equity swap fails to turn the company around. As a result, the conglomerate will be realigned to six units - Daewoo Motor, Daewoo Motor Sales, Daewoo Capital, the auto unit of Daewoo Telecom, the trading division of Daewoo Corp and the machinery section of Daewoo Heavy Industries. But the future of Daewoo Motor, the only company to remain within the group after the restructuring, depends on how its strategic alliance with General Motors turns out. Creditors have threatened to liquidate collateral immediately if Daewoo fails to follow the restructuring orders by the due date on the contract. They will conduct comprehensive supervisions on the restructuring progress quarterly. (Asia Pulse/Yonhap) | |||||||||
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