Tag: kdb

By on January 18, 2010

Sweep it under the rug...

An interview with Forbes the boss of the Korean Development Bank, which GM-Daewoo still owes several billion dollars, reveals that GM’s South Korean unit had a debt-to-equity ratio of 912 percent as recently as last June. GM “rescued” its crucial small-car development center by buying up all $413m of GM-Daewoo’s recent share offering, keeping the the KDB from imposing its will on the automaker. That was enough to keep the wolf from Daewoo’s door in the short term, but if Daewoo is ever going to develop a new generation of GM small cars and global products, it will have to address its $2b KDB debt and raise additional funds. For now though, GM-Daewoo is just hoping to keep a little momentum going.

(Read More…)

By on October 30, 2009

Hmm... seems more like a different kind of storm (courtesy:wardsauto.com)

It’s not that GM’s Korean Daewoo division doesn’t need more money. The problem is that the only bank willing to lend a dime, the Korean Development Bank, wants strings attached. Since GM came up with the cash to buy up Daewoo’s $413m rights offering, it says Daewoo is out of trouble for two more years. Or 18 months… depending on that troublesome global car market. Meanwhile, GM-Daewoo’s $5b worth of forward contracts will burn up $300m in cash every month, as the debt matures. Although KDB and GM-Daewoo’s other lenders refuse to roll any of that debt forward and have been firm about enacting safeguards before loaning the automaker more money, GM’s Nick Reilly says Daewoo can now negotiate from a position of relative strength. Emphasis on relative.

(Read More…)

Recent Comments

  • Re: Ur-Turn: Need A Lyft?

    danio3834 - The Lyft website specifies that drivers must have a 2000 MY or newer 4 door. Bummer, the Nova’s out. I wonder what late model car could be used as a stand-in…
  • Re: Ur-Turn: Need A Lyft?

    bball40dtw - Hahahahahahaha Pretentious 20 something. Sonny. The REAL world. Fantastic. There is nothing that you could say that would offend me. However, your attitue, disposition,...
  • Re: New York 2014: Outtakes Part 1 – The Masses Are Asses

    NotFast - Peter De Lorenzo from Autoextremist has been railing about the cheapening of the luxury brands forever. While I agree, I wonder if the...
  • Re: Town And Country Update: Road Trip

    FormerFF - When I was a child, we used to take two long trips per year. Back then in-car entertainment was pretty much limited to AM radio, then later 8 track tapes. Out...
  • Re: Subaru: No WRX Hatch For U.S. Market

    Pinzgauer - I decided my happiness was more important than my wife being able to drive my car, so that’s why my Mustang and daily driver Wrangler Unlimited are...
  • Re: New York 2014: Outtakes Part 1 – The Masses Are Asses

    Volt 230 - If you MUST own a Mercedes Benz and your budget is not quite there, BUY A USED ONE, at least you know you’re getting the real...
  • Re: New York 2014: Outtakes Part 1 – The Masses Are Asses

    Carfan94 - And gtrslngr had the audacity to say this was going to be better than the Lexus NX. lmao
  • Re: UAW Ends Fight For Organization Of Tennessee VW Plant

    u mad scientist - > I’m trying to find the written evidence about the crossover expansion plan. Both sides claimed if you played their way...
  • Re: Ur-Turn: Need A Lyft?

    28-Cars-Later - I assume that’s a clever quip or reference but Fluoxetine aka Prozac is actually not very good for you since its primary ingredient includes Flourine. Flourine...
  • Re: Ur-Turn: Need A Lyft?

    Nicholas Weaver - Over WiFi, not Cell. Set in “Private” browsing mode.

New Car Research

Get a Free Dealer Quote

Staff

  • Authors

  • Brendan McAleer, Canada
  • Marcelo De Vasconcellos, Brazil
  • Matthias Gasnier, Australia
  • J & J Sutherland, Canada
  • Tycho de Feyter, China
  • W. Christian 'Mental' Ward, Abu Dhabi
  • Mark Stevenson, Canada
  • Faisal Ali Khan, India