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Liquidators tie up loose ends at Daewoo Cars

Daewoo Cars, the former sales and distribution operation for Daewoo vehicles in the UK, has finally gone into liquidation.

Accountancy firm Baker Tilly, which is handling the move, says there are approximately 600 trade and business creditors – including parts and components suppliers – owed about £125m. It has also notified about 38,000 former Daewoo Cars customers. However, it does not anticipate significant numbers of claims because comprehensive arrangements for service and warranty provision were made when the company went into administration.

The Worthing-based operation wound down after General Motors took over the Korean company for $251m (£139m) in May 2002. It ceased trading after administrators were appointed on October 8. Since then, most of the company's assets have been sold.

Bruce Mackay, a partner in Baker Tilly's business recovery unit, says the liquidation will not result in any job losses as many employees were made redundant during the administration, while some moved to the new GM Daewoo operation.

“We'll be continuing to release further assets from the business and to agree the claims of the creditors. We hope to be able to make a first distribution to them later this year and are currently expecting the total dividends to be in the region of 10p to 15p in the pound,” he says. A creditors' meeting was held this week in London.

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