LOS ANGELES - Daewoo Motor America Inc. estimated its debts at more than $100 million as it filed for Chapter 11 bankruptcy on May 9, according to court documents made available last week.
The sales arm's filing listed more than 10,000 creditors including several banks, rental car agencies, utility services, customers, dealers and employees of dealers.
The company's largest listed creditor is PPM Finance Inc. of Chicago, which provided financing for cars purchased from Daewoo Motor Co., Daewoo Motor America's parent company in Korea.
According to the court's records, PPM Finance has a 70 percent lien on 9,383 new cars and 1,132 used cars. Daewoo Motor America owes the creditor approximately $55 million, the filing stated.
Also in the filing, Daewoo Motor America estimated its assets at more than $100 million, though the assets were not listed.The company's cash flow came to a halt in late March when dealers stopped ordering cars amid indications that General Motors would not acquire the U.S. sales arm as part of a deal to take over core assets of Daewoo Motor Co.
Since then, the sales arm laid off 65 percent of its employees. Because the product flow has stopped indefinitely, further cuts are expected as the sales arm liquidates its assets.
Meanwhile, Daewoo Motor America is responsible for distributing warranty reimbursements to dealers until the deal between GM and Daewoo's creditors is closed. Daewoo Motor Co. - which has been in bankruptcy for a year, owing some $13 billion - has said it would provide the U.S. sales arm with the funds.
The U.S. Bankruptcy court for the Central District of California has not given Daewoo Motor America a deadline for filing schedules, which will state the amount owed to each creditor. The court issues a 15-day period for filing schedules - though Daewoo Motor America in its filing requested 45 days and consideration for extensions.