Daewoo Motor suppliers to meet over delayed payment

SEOUL, Aug 23 Reuters is reportinhg that parts suppliers to Daewoo Motor Co, South Korea's third-largest automaker, said on Friday they would meet Daewoo creditors on Monday to seek more than one trillion won ($844.8 million) in overdue payment for components.

In April, General Motors Corp agreed to invest $251 million in a joint venture with Daewoo's creditors, which would give the world's biggest automaker a 42.1 percent stake -- the largest -- while its business partners hold 24.9 percent.

GM agreed to provide up to $250 million in support payments to Daewoo's parts suppliers.

"Daewoo Motor's parts suppliers are faced with worsening financial conditions as payments for components have been delayed in recent weeks," Cho Hang-kyun, a representative for the automaker's 180 parts suppliers, told Reuters.

"We have no immediate plans to halt supply, but we plan to meet with Daewoo Motor's creditors on Monday," he said.

A Daewoo Motor official told Reuters parts suppliers are owed around 1.4 trillion won, while payment requires the approval of creditors.

"The issue of how much of Daewoo Motor's debt is to be shouldered by creditors is still under discussion," he said, explaining the delay in payment.

Japan's top minivehicle maker Suzuki Motor Corp has said it would take a 14.9 percent stake in the GM-Daewoo joint venture, paying $89 million for the holding.