October 16, 2003 - Daewoo Motor America, Inc. ('DMA') has confirmed its plan of reorganization ('Plan'), which becomes effective today. DMA filed for protection under Chapter 11 of the Bankruptcy Code on May 16, 2002. The Honorable Judge Sheri Bluebond of the U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, presided over the bankruptcy proceedings.
The order confirming the Plan was entered after more than a year of negotiations with creditors, dealers and other parties in interest and after a comprehensive, two (2) day confirmation hearing in which the Plan was confirmed over the objection of DMA's parent company, Daewoo Motor Company, Ltd. ('DWMC').
'We are emerging as a vital enterprise focused on supplying parts and providing warranty administration to approximately 180,000 Daewoo owners and approximately 450 Daewoo dealers nationwide.' stated Y.S. Hong, DMA's President and CFO.
The Compton, California based company is the only automobile distributor to file for bankruptcy protection in recent memory. DMA was forced to do so in May 2002 after General Motors Corporation ('GM') purchased certain assets of DWMC in Korea, but excluded DMA from the acquisition. Although DMA's exclusion from GM's acquisition prevented DMA from distributing Daewoo vehicles, DMA's management has been fully committed to supplying Daewoo parts and to providing warranty administration to approximately 180,000 Daewoo owners through its nationwide, independent dealership network. This effort and commitment resulted in DMA entering into long-term agreements with General Motors Daewoo Auto & Technology ('GMDAT'), preserving DMA's exclusive rights to continue providing Daewoo parts and warranty administration to the U.S. market. Now, Daewoo owners can be assured that an ongoing supply of parts will be provided along with services to support each of the vehicle warranties described in the Warranty & Maintenance Information Booklet provided with every Daewoo vehicle. 'Those owners who are in need of parts or warranty service should contact their nearest Daewoo Dealer,' advised Ben Rainwater, Vice President – National Parts & Service Division. Rainwater added, 'DMA's web site, www.daewoous.com, continues to provide a current Daewoo Dealer locator. Additionally, customers can contact DMA via their toll free telephone number at (877) 362-1234 (select option 6) for assistance.'
DMA's management is optimistic about the future of the reorganized company, which will focus on the support of Daewoo vehicle owners and which is anticipated to involve a variety of new business opportunities.
