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In a plenary meeting Tuesday, the creditors of Samsung Motor agreed to accept the major terms and conditions reached last Saturday with French auto firm Renault for a US$562-million (W620-billion) deal for the takeover of the Korean carmaker. Samsung Motor creditors have, however, requested further negotiations on several other terms. The final contract for the deal is due to be signed Thursday at Samsung Motor’s Pusan plant. In order to complete the takeover, Renault will launch a new company in Korea jointly with Samsung that will then take over the assets of group’s ailing automobile manufacturing unit.

According to the agreed terms, the French firm will hand over W110 billion outright upon taking over the assets of Samsung Motor and pay out an additional W233 billion in installments between 2004-2014. In addition, Renault will also take on W233 billion of the Korean auto firm’s debt. Rounding out the deal, Samsung Motor creditors will convert W44 billion of the firm’s debt into equity in the new firm. The new firm will have a starting capital of W360 billion and assets of more than W1 trillion. The ownership ratio will be as follows: Renault, 70.1%, Samsung 19.9% and creditors 10%. Samsung group said that two of its subsidiaries, Samsung Capital and Samsung Card, would jointly invest US$100 million, or W110 billion, into the new company.

The establishment of the new 3-party joint venture will see the existing Samsung Motor relegated to a paper company which will take steps towards liquidation at local courts.