Feeds

Daewoo faces foreign debt crisis

But will the PC company's recent massive wins come to the rescue?

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Stricken industrial giant Daewoo has been knocked back by creditors after asking them to agree to a six month moratorium, which would have given it a much needed break from its crippling debt repayments. It had offered collateral, in the form of shares in the company, in return for the payment break, but this was rejected over the weekend. The group's foreign debt adds up to more than $5 billion and, according to The Korea Herald, Daewoo's foreign creditors have demanded that either the Korean government, or Korean banks, underwrite the debt. The conglomerate is committed to repaying $3 billion by the end of the year. Despite the seemingly unending series of financial hurdles the Daewoo group has to get over, its PC subsidiary is one division that looks like it may have a viable future. In recent months it has secured two huge PC supply contracts – one of which was the largest Korean PC export deal. The first was in August and saw Daewoo sell 1.4 million PCs – at a value of $700 million. But this was topped this month when Daewoo won a contract to supply $840 million worth of PCs (1.92 million units in all) to US retail chain Enpointe. Daewoo is said to considering setting up a joint venture with Enpointe to capitalise upon recent success in the US market. With sales to the US market alone at over $1.5 billion after just two deals, the PC company could be in a position to turn the corner for Daewoo. Winning deals of this magnitude can only be done by the group using its massive purchasing power to squeeze its margins to a point many manufacturers simply could follow. But with only a modest increase in price per unit, the Daewoo PC company could realise significant increases in revenue. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
4chan outraged by Emma Watson nudie photo leak SCAM
In the immortal words of Shaggy, it wasn't me us ... amirite?
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.