to sue if the creditors owning South Korea’s Daewoo Electronic Co. try to sell the financially troubled firm to anyone else.
But Entekhab went beyond the threat of a suit; it also threatened to do damage to Daewoo by ceasing to buy Daewoo products.
Entekhab won a bidding competition last year to buy Daewoo. The losing bidder was Sweden’s Electrolux.
But in the months since winning the bid, Entekhab has failed to say how it will pay for Daewoo. Daewoo’s owners—chiefly Woori Bank and Korea Asset Management Corp.—extended the deadline for Entekhab to outline a payment plan three times.
Last month, they refused to give a fourth extension and announced they would start talks with Electrolux to sell Daewoo to the Swedish firm.
Entekhab screamed. In a statement carried last Thursday by the Iranian Students News Agency, Entekhab said:
“Entekhab Group, the largest business partner with Daewoo Electronics, will review its decision of its cooperation with Daewoo and preserve its right to completely halt its business activities with Daewoo if the company fails to offer a way out of this crisis. We warn the company that the nullification of the contract is illegal and we will follow up the case through the courts to stop any deal on selling the company [to another bidder].”