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GM’s Korean Unit to Fully Repay $1 Billion of Debt

Dec. 1 (Bloomberg) -- General Motors Co.’s GM Daewoo Auto & Technology Co. unit said it will fully repay a $1 billion revolving credit facility led by Korea Development Bank this month, reducing the company’s borrowing costs.

GM Daewoo also said it will continue talks with Korea Development Bank, its main creditor, relating to technology agreements and an equity rights issue.

“We are in the middle of discussing these issues with KDB and our talks are progressing positively,” Jay Cooney, a spokesman for Incheon, South Korea-based GM Daewoo, said in an e-mailed response to questions today. Cooney said he couldn’t provide more details on the rights issue and technology pacts.

The full repayment reflects GM Daewoo’s strong financial performance this year, the unit’s Chief Executive Officer Mike Arcamone said in a statement. Korea Development Bank has extended the credit facility seven times since May, Cooney said.

GM Daewoo sold 680,305 vehicles in the first 11 months of 2010, 33 percent more than a year earlier, according to a separate company statement. The units sold included exports of 568,888.

To contact the reporter on this story: Sookyung Seo in Seoul at sseo10@bloomberg.net.

To contact the editor responsible for this story: Kae Inoue at kinoue@bloomberg.net.

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