Dong Ah may receive loans; creditors attach conditions to sustain unit

Article Abstract:

Dong Ah Construction Industrial Co. received 600 billion won or $426 million in fresh loans to keep it from sliding to bankruptcy. Dong Ah has been been allowed to pay reduced interest payments on its 3.4 trillion won debt without being obliged to pay the principal amount. Creditors, however, sought a management revamp and the sale of real estate holdings in exchange for the new loans. The bailout provided by 51 banking institutions to financially-troubled Dong Ah is held to be a setback to economic reform in South Korea. The practice is said to frighten foreign investors from joining the banking sector.

Comment:

Receives 600 billion won or $426 million in fresh loans to keep it from sliding to bankruptcy

South Korea, Financial management, Dong Ah Construction Industrial Company Ltd., Article

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Daewoo counts on France's Thomson to transform it into a television star

Article Abstract:

Daewoo Electronics Company Ltd. and its partner Lagardere Groupe have won the bid for Thomson S.A. Daewoo Electronics Chmn. Bae Soon Hoon noted that the acquisition of Thomson will significantly bolster the company's presence in the European consumer electronics market. However, many analysts contradict Bae's assertion, stressing the Thomson's huge financial losses may only hamper Daewoo Electronics.

Mergers, acquisitions and divestments, Consumer electronics industry, Lagardere Groupe S.A., Thomson S.A., Daewoo Electronics Company Ltd.

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Expansion raises a red flag at Daewoo

Article Abstract:

Many analysts are cautioning investors against putting their money in South Korea's Daewoo Group. They state that the company is financing its aggressive overseas expansion through debt and new equity issues and this is likely to depress earnings and result in slim profit margins for some time. However, they are optimistic about the Daewoo Group's short term prospects.

Electronic computers, Motor vehicles and car bodies, Computers, Electronic Computer Manufacturing, Motor Vehicles, Automobile and Light Duty Motor Vehicle Manufacturing, Ship Building and Repairing, Shipbuilding & Repair, Conglomerate corporations, Securities, Daewoo Corp.

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