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Economy
GM to unveil plan to suppport Korean car unit
2009-10-15
SEOUL, Oct. 15 (Yonhap) -- The head of General Motors Corp. plans to hold a press conference on Thursday to reveal plans to support its troubled Korean unit GM Daewoo after the U.S. carmaker and Korea Development Bank (KDB) reconfirmed their differences the previous day, GM Daewoo officials said.
Good thing we bailed GM out with all those American dollars, huh ...
Since February, cash-strapped GM Daewoo Auto & Technology Co. has been in talks with KDB to receive about 1 trillion won (US$855.8 million) in new loans after using up a $2 billion credit line. The negotiations have faltered on GM's refusal to put up part of its stake in GM Daewoo as collateral.

GM Chief Executive Officer Fritz Henderson visited the headquarters of KDB on Wednesday to listen to opinions from officials there. The visit came as Min Euoo-sung, chairman of KDB, warned on Oct. 6 that the bank will retrieve maturing loans from GM Daewoo if the U.S. carmaker refuses the bank's demands to extend emergency funds.

"If GM does not accept our demand, KDB will not participate in a new share sale and plans to retrieve maturing currency forwards or loans," Min said.
"No more Chevy Aveos for you!"
KDB, which owns a 27.97 percent stake in GM Daewoo, has called on GM to faithfully fulfill its commitment as the biggest shareholder. The state-run lender has called for GM to increase the size of the share offering and to let GM Daewoo retain licenses for cars developed by its Korean subsidiary. GM holds a 51 percent stake in GM Daewoo with KDB and other GM partners owning the remainder. GM Daewoo was created in 2002 after GM acquired Daewoo Motor Co., the automobile manufacturing unit of the now-defunct Daewoo Group.
Posted by:Steve White

#2  interesting, since Daewoo just bought the assets of the DeWind company and are even now restarting manufacturing efforts on the aborted DeWind wind turbine blades and the various bits of tooling that is needed for same. these are not cheap.
Posted by: USN, Ret.   2009-10-15 23:21  

#1  GM owns a huge chunk of ISUZU (Unless they sold it recently).
Posted by: Redneck Jim   2009-10-15 06:04  

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