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GM to convert $2 bn debt of Korean arm to equity, wants tax sops in return

Korea Development Bank believes the auto maker has not shared sufficient information about its finances or the cause of its mounting losses

Reuters  |  Seoul 

The restructuring proposal comes after the Detroit automaker announced last week that it would shut its plant in the city of Gunsan, southwest of Seoul, by May and decide the future of the remaining three plants in the country within weeks. The debt for equity swap would allow GM's business in South Korea to continue operating. It was not immediately clear how the deal would affect the interest of the state-run Korea Development Bank, which owns 17 per cent of GM Korea. GM's decision was the latest in a series of steps it has made to put profitability and innovation ahead ...

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First Published: Wed, February 21 2018. 13:07 IST