Court Receiver Takes Over Daewoo India Plant

New Delhi, May 20: | Updated: May 21 2003, 05:30am hrs
A court receiver has seized the assets of bankrupt carmaker Daewoo Motors India Ltd, an official at one of the creditor banks said on Tuesday. The court in March directed the receiver to take possession of the assets to prevent any damage or pilferage because the management assigned by the court to maintain the closed plant had abandoned it, the official said.

The receiver is trying to sell the assets in six parts to repay creditors after the sale of the business as a standalone firm evoked no interest.

South Koreas failed Daewoo Corp had held 91.6 per cent of the unit. Daewoo India workers demonstrated outside the plant on the outskirts of Delhi, demanding that money due to them be paid and their jobs protected before the sale of the assets.

About a dozen people were injured in a clash with police, who tried to break up the protest and evict workers from the plant.

The assets are now in possession of the court receiver who is verifying inventory.

About 18 Indian banks and financial institutions including the Industrial Development Bank of India, ICICI Bank and Export Import Bank of India lent over Rs 12 billion to Daewoo India.

The firm, whose plant has a capacity to make 72,000 units a year, was Indias third-largest car company before its parent went bankrupt in November 2000. (Reuters)