The creditors of Daewoo Electronics Corp. have agreed to extend by one month, to May 7, the payment deadline for Entekhab Industrial Group to take over of South Korea’s third-largest electronics company, the Yonhap news agency cited an informed source as saying Monday.
This marked the third time the creditors of Daewoo Electronics, led by state-run debt clearer Korea Asset Management Corp., agreed to postpone the payment deadline at a request of Entekhab.
The two sides thought they had sealed the deal for the sale of Daewoo Electronics in November.
Entekhab agreed to take over 97.5 percent of ownership of Daewoo Electronics for $433.76 million, but has only paid a deposit totaling 12 percent of the purchase price.
Sweden’s Electrolux lost out on the bidding for Daewoo, but is understood to be waiting in the background ready to pick up the pieces if Entekhab fails to come through with its payment.
Daewoo Electronics has been under a debt-rescheduling program since August 1999 and is a former subsidiary of the now-defunct Daewoo Group.