Creditors extend debt workout program for Daewoo Electronics

SEOUL, March 31 (Yonhap) -- Creditors of Daewoo Electronics Co. said Tuesday they
will extend a debt workout program for South Korea's third-largest electronics
maker by one year until March 2010.
The planned sale of Daewoo Electronics to U.S.-based private equity fund
Ripplewood Holdings LLC hit a snag early this year as Daewoo's creditors, led by
the state-run Korea Asset Management Corp, failed to reach an agreement with the
bidder over the price of the controlling stake.
Daewoo Electronics is a former unit of the defunct Daewoo Group, a local
conglomerate that collapsed in 1999 under debts totaling $80 billion. Its sale
was initiated in October 2005 but has been dogged by labor disputes and
disagreements over price.
In 2007, the creditors rejected a 700 billion won (US$501 million) offer from a
consortium led by India's Videocon Industries Ltd. The sale stalled again last
year when Morgan Stanley PE, a unit of global investment bank Morgan Stanley,
scrapped its bid for the electronics company in August.
Creditors own 98 percent of the electronics giant, which has recently cut jobs
and sold non-core assets in an effort to restructure.
sam@yna.co.kr
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