Daewoo foreign creditors given extra three weeks to sell debt

Daewoo Group''s foreign creditors have been given an extra three weeks to tender $4.3 billion of the company''s debt in respect of a 40 cents in the dollar payout plus warrants.

Foreign creditors of Daewoo Group have been given an extra three weeks to sell $4.3 billion of Daewoo debt to the chaebol's Korean creditors under the terms of an agreed buyout programme. The extension was granted at the foreign creditors' request during roadshows in London, Hong Kong and Singapore, owing to technical difficulties in meeting an original deadline of 30 June, says Park Young Ha, a managing director at Daewoo's restructuring committee.

Foreign creditors accepting the programme will receive 40% of the face value of their debts plus warrants, which could give them stakes of as much as 8% in Daewoo Corp, Daewoo Electronics and Daewoo Heavy Industries in the future. The cash portion...

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