Daewoo Motor Sales seeks debt rescheduling

South Korea's Daewoo Motor Sales Corp on Thursday asked its lead creditor Korea Development Bank (KDB) to allow a debt rescheduling program for the troubled car retailer, KDB said.

The move comes after GM Daewoo, South Korea's No. 3 automaker, recently decided to terminate its retail contract with the firm and to use its own and other sales networks, driving the distributor's shares down by almost two-thirds so far this year.

"Korea Development Bank received the request on April 8 and notified other creditors to hold a first round of meetings to discuss it on April 14," a KDB spokesman said in a statement prepared for media release.

Shares in the former unit of the bankrupt Daewoo Group leapt 11.5 percent to 3,300 won ($2.9) by 0154 GMT on expectations of a debt payment reprieve, outperforming the wider market , which slipped 0.24 percent.