(21 Jan 2000) English/Nat
Last ditch talks between the Korean manufacturing conglomerate Daewoo and its creditors in Hong Kong have yet to yield any results.
Daewoo owes foreign creditors more than five (b) billion dollars and needs to reach a deal to prevent the firm's collapse.
The Daewoo group and its creditors have agreed to meet again on Friday to search for a way to settle the company's outstanding five (b) billion dollars in foreign debt.
There were high expectations on Thursday in Hong Kong, when the first set of meetings were held.
But the two parties failed to reach an agreement and agreed to meet again on Friday.
SOUNDBITE: (English)
"The thought of it being an unfair playing field with either the foreigners or the domestic banking benefited, I think is no longer a significant point as it has been in the past. So I think that the chances of it being successfully realised are increasing."
SUPERCAPTION: Julian Mayo, Managing Director, Gregent Pacific Group
Some industry observers remain sceptical that a final agreement on Daewoo Group's foreign debt problem is imminent.
If the talks fail, it will mean the collapse of Daewoo.
A successful conclusion to the talks is needed if the Korean economy is not to be hit hard.
SOUNDBITE: (English)
"In the short term there may be some uncertainty. In the long term I think a successful resolution to the Daewoo crisis which is likely to happen will be very positive for the Korean economy."
SUPERCAPTION: Julian Mayo, Managing Director, Gregent Pacific Group
Earlier in the week, Financial Supervisory Commission Chairman Lee Yong-keun said that "the prospects are bright" for Daewoo Group's talks with its foreign creditors.
The South Korean government spokesman refused to comment.
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