GM-Daewoo Motor Launch Delayed by Creditors

SEOUL, Aug 12 Reuters reported that the launch of GM-Daewoo Motor Co, a joint venture due to be formed by General Motors Corp taking over key assets of Daewoo Motor Co, is likely to be delayed by a dispute between creditors, the Dong-A Ilbo newspaper said on Monday. The Dong-A Ilbo newspaper said creditors of bankrupt Daewoo are struggling to decide on who invests how much in the new GM-Daewoo, part of the acquisition agreements.

Creditors have agreed to buy $197 million worth of GM-Daewoo shares, as GM, the world's largest automaker, signed a $400 million deal in April 30 to buy key assets from Daewoo.

The joint venture, which was planned for early September, will include two Daewoo plants in South Korea, one in Vietnam as well as a number of overseas sales units.

Some lenders have also refused to extend new loans to Daewoo because the agreed interest rates are considered too low and its business prospects are still uncertain, the report said.