SEOUL, NOV 8: South Korea's troubled Daewoo Motor Co was on Wednesday officially declared bankrupt, creditor banks said. "Daewoo Motor was officially declared bankrupt today. The decision was made at a meeting of creditor banks," an official of Daewoo Motor's main creditor bank, Korea Development Bank (KDB), said.The bankruptcy is also expected to hamper efforts to sell Daewoo Motor to General Motors. But the KDB has said talks with General Motors to sell Daewoo Motor would continue even if the company were placed in receivership.Daewoo India reserves comment NOV 8: The bankruptcy was declared after the Daewoo Motor Union refused to back down on 3,500 job cuts. General Motors and Fiat SpA are negotiating for a possible takeover of Daewoo's global operations including India and the bankruptcy is expected to hamper efforts to sell Daewoo Motor Co."In fact, we would like to increase the production by generating additional demand for our products in the market," the official added. On October 9, Daewoo India had said it had cut down its office staff, excluding floor workers by 15 per cent and had reduced the number of divisions from seven to three as part of an ongoing restructuring exercise which began in March this year.
