Daewoo Creditors Begin Due Diligence Dec 20, 2005

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Creditors of Daewoo Electronics Corp. started conducting due diligence into the assets and debts of the Korean producer of electronics and appliances, according to Korea's JoongAng Daily.

As APPLIANCE magazine reported in July 2005, Daewoo Electronics has been under the control of the state-run Korea Asset Management Corp. (KAMCO), which announced its intention to sell the company in the second half of 20005. Daewoo Electronics has been under a debt workout program since parent Daewoo Group collapsed under debts of nearly U.S. $80 billion in 1999.

"KAMCO has agreed with main creditor Woori Bank and the management of Daewoo Electronics on the sale," KAMCO president Kim Woo-suk told reporters in July.

The state asset management company is a major shareholder in Daewoo Electronics, once one of Korea's top home appliance makers.

Several companies are known to be interested in buying the company, and recent months has seen speculation that China's Haier is interested in acquiring it. Haier earlier this year lost a bidding war for U.S. appliance company Maytag Corporation. The JoongAng Daily report said investors from China, India, Europe, and the U.S. have shown interest in Daewoo Electronics.

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