Lenders In Attempt To Sell Daewoo Assets To Car Firms

The lenders of Daewoo Motor India Ltd (DMIL), led by Industrial Development Bank of India (IDBI) and ICICI Bank, have approached domestic car makers to acquire assets of the ailing company.

Local banks and institutions, which have a total exposure of Rs 1,000 crore to DMIL, have written to half-a-dozen car companies in the last fortnight, industry sources said.

On the block are the engines and trans-axles unit, the paint-shop, dyes and press-shop, but not the main assembly line.

An IDBI official, however, said that a large automobile maker, which has a manufacturing facility in the south and has plans to expand in the north, has expressed an interest to buy the assembly line.