An audit report by Deloitte Anjin, an accounting firm, said its current liabilities exceed liquid assets by 964.4 billion won and "there remains a significant uncertainty that could question its continuation ability."

The company's fate is in the hands of Korea Development Bank (KDB), GM Daewoo's main creditor, according to industry watchers. Since February, GM Daewoo has been requesting additional loans from banks, including KDB, after exhausting its $2-billion credit line.

"We are currently in discussions with KDB, and we are sharing with them our plans on what we intend to invest in," Grimaldi said. Nick Reilly, Grimaldi's boss and chief of GM's Asia-Pacific operations, also went to KDB cap in hand but his plea for help was not answered.

Perhaps in a move to sweeten its appeal, GM Daewoo said Tuesday it appointed former KDB Governor Kim Chang-rok as its new outside director, possibly leading to KDB's purchase of additional GM Daewoo stakes. Currently, KDB owns a 28-percent stake, with the rest owned by other global GM units.

A KDB official, who declined to be identified, said the chance is open for the state-run bank to come to GM Daewoo's rescue but not on the automaker's terms.

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http://www.koreatimes.co.kr/www/news...123_42974.html