Financial Institutions (FIs) including IDBI, ICICI and Exim Bank are talking to leading consultancy firms including KPMG to advise them on their strategy to salvage trouble-torn Daewoo Motors India Ltd (DMIL).A senior official from one of the FIs told The Indian Express that “the consultancy firm will also identify suitable buyer for DMIL”. It is understood that lenders are looking at all domestic small car manufacturers including Telco, Hyundai, Maruti and GM (which doesn’t have a small car in India). “We are acting very fast and we are keeping all our options open, the official added. Meanwhile, a receiver has been appointed by the Mumbai-based Debt Recovery Tribunal (DRT) on the basis of a petition filed by these FIs. The official added that a team from the receiver’s side is already taking stock of the inventory at DMIL’ manufacturing facility located at Surajpur near Noida. A DMIL board meeting is expected again this week.FIs, after recalling the loans last month, had approached DRT for permission to take over the assets of the company. Institutions have a total loan exposure of Rs 970 crore. IDBI is the lead institution for the Korean company with Rs 90 crore rupee term loan and an additional $50 million foreign currency loan while ICICI has given Rs 105 crore rupee term loan and $70 million foreign currency loan. Exim Bank offered Rs 35 crore as rupee loan and $20 million as foreign currency loan.In the mean time, after remaining closed for nearly two weeks late last month, production in Daewoo’s plant has started again. According to a company official, the production is strictly according to the demand and the company is producing around 50 cars per day on a single shift basis with an inventory of nearly 400 cars.Daewoo has 1.5 lakh customers, whose fate is unknown in these circumstances. Last week, Daewoo’s management also had a discussion with the Daewoo’s employees union regarding the retrenchment of 300 employees. However, after arriving at an agreement, the plan was dropped. At present, nearly 1,450 employees are working for Daewoo Motors including 1,250 on the shopfloor. Trouble actually started in Daewoo’s Indian subsidiary when General Motors decided against including DMIL in its definitive agreement that was signed last month with Daewoo Motor Corporation.
