Seoul, Feb 22: Creditors of South Korea's Daewoo Electronics are set to scrap a plan to sell the co

Seoul, Feb 22: Creditors of South Korea's Daewoo Electronics are set to scrap a plan to sell the company after failing to close a proposed deal worth up to $746 million with a consortium of Videocon Industries Ltd, a creditor source said on Thursday.

Daewoo's creditors had reviewed a revised bid from a consortium made of Videocon Industries Ltd. and RHJ International , the holding company of U.S. buyout fund Ripplewood.

The consortium was picked in October 2006 to buy Daewoo Electronics, the home appliances and television making arm of the failed Daewoo Group, with an initially agreed price of 700 billion won ($746 million). But creditors later turned down the bid after the consortium sought a large discount.

''Selling Daewoo appears to be out of the question now,'' said the source, who declined to be identified. ''We left the door open for a new bid but it didn't include anything significant enough to reconsider.'' The creditors will soon outline measures to help Daewoo operate on its own, the source said.

''We have prepared several measures to help Daewoo recover on its own, and will come up with a firmer plan soon.'' A spokesman for Daewoo Electronics said its creditors had yet to notify the company of any decision on the sale plan.

Domestic creditors own 97.5 percent of unlisted Daewoo, which was placed under a debt rescheduling regime after its parent group went bankrupt in 1999.

The creditor source declined to give details on the proposed restructuring plan, but added creditors could meet in early March to discuss the measures.

Corporate restructuring led by creditors usually calls for sales of non-core businesses and assets as well as operation downsizing.

Daewoo operates six plants in South Korea and 18 overseas units and focuses on televisions, air conditioning units and refrigerators.

Daewoo has yet to report 2006 results but the company has said it did not expect to post a profit for 2006. The strengthening won has put pressure on its export-led business.

($1=938.2 Won) REUTERS