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. Last Updated: 07/27/2016

Creditors Plan Daewoo Sales




SEOUL, South Korea -- Creditors of South Korea's troubled Daewoo Group will unveil Wednesday a restructuring plan calling for the sale of the group's profitable brokerage and construction units.


Daewoo executives discussed the plan Tuesday with officials from the Financial Supervisory Commission, which is in charge of restructuring insolvent banks and highly geared corporations, an official from lead creditor Korea First Bank said.


The plan, which would effectively dismember the country's second-largest conglomerate, includes the sale of Daewoo Securities, Seoul Investment Trust and construction firm Keang Nam Enterprise, the official said.


But a Daewoo Group spokesman said the group did not want to sell Daewoo Securities, its stake in Seoul Investment Trust or Keang Nam. Daewoo Securities is the group's most profitable unit and the country's largest brokerage.


The group plans to spin off Daewoo Electronics and the shipbuilding division of Daewoo Heavy to a third party to expedite their sales, group spokesman Jang Sai-chan said.