'No official move to liquidate DMIL'

new delhi: daewoo motors india on tuesday said there has been no official move to liquidate the indian arm of the troubled korean car maker daewoo motor. "any report suggesting or hinting towards the liquidation of dmil is purely speculative and unsubstantiated. dmil md and ceo y t cho is reaching india this evening from korea. he has conveyed us that there are no plans at all of dmil liquidation in korea as well," dmil corporate communication head, azad jain, said."there has been no official move to this effect (liquidation proceedings) from our side or by our korean counterpart. our fundamentals are strong in india and dmil has the capacity to sustain its operation independently," he said. on monday, afp had reported that the indian plant of troubled daewoo motor faces liquidation as its capital was already eroded by losses. the agency quoted south korea's seoul economic daily as saying that daewoo motor's creditors and sister company daewoo corp may take on $1.05 billion in costs associated with the possible liquidation of dmil. dmil ceo has had discussions about financial restructuring of the loss making indian operations in korea, he said, adding that: "we are waiting for his return this evening. the report of the korean daily is purely speculative," jain said. "however, i do not deny that dmil is facing financial crunch," he added. azad said dmil's operating losses of $120 million have eroded 77 per cent of its capital as of end-october. the indian company has an annual production capacity of 72,000 units. at present, the company is manufacturing only 1,200 vehicles. daewoo corp holds a 91.6 per cent stake in dmil. currently, dmil has rs 1,100 crore of external debt while domestic financial institutions have lent it about rs 600 crore, azad said, adding indian fis are supportive of any restructuring.