Creditors to complete sale of Daewoo Electronics by August

SEOUL, March 25 (Yonhap) -- Creditors of Daewoo Electronics Co. plan to complete
the sale of South Korea's third-largest electronics firm by August this year, a
leading creditor bank said Thursday.

On Wednesday, Swedish home appliance maker Electrolux and Iranian rival Entekhab
Industrial Group were picked as preferred bidders for Daewoo Electronics.
"Creditors plan to sign a formal contract to sell the appliance maker by August,"
said an official at Woori Bank, the main creditor.
Financial terms of the deal have not been disclosed but market experts estimate
the bidding price at 500 billion won (US$438 million).
Previous attempts to sell Daewoo Electronics have fallen through over differences
regarding the acquisition price.
Daewoo Electronics, which produces home appliances including microwaves,
refrigerators and vacuum cleaners, has sold non-core assets and unprofitable
businesses to focus on washing machines and refrigerators.
The company, which has been under a debt workout program since January 2000, is a
former subsidiary of the now defunct Daewoo Group, a local conglomerate that
collapsed in 1999.
In March last year, the creditors of Daewoo Electronics extended a debt workout
program for the company by one year. The program is set to expire this month.
sam@yna.co.kr
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