FOR IMMEDIATE RELEASE:
November 13, 2002

FOR FURTHER INFORMATION CONTACT:
Genene Morris (973) 504-6327

NEWARK - The New Jersey Division of Consumers Affairs has sent letters to consumers who have complained to the Division of problems with the purchase and/or service of their Daewoo vehicles to inform them that they have until November 18 to file proofs of claim in bankruptcy court against the bankrupt automobile manufacturer, Attorney General David Samson and Consumer Affairs Director Reni Erdos said today.

Daewoo Motor of America, Inc., filed for Chapter 11 bankruptcy protection in May 2002 creating for consumers certain legal issues that may affect any future claim they make against the company.

"The bankruptcy filing has resulted in problems with some Daewoo dealerships in obtaining parts and/or reimbursement for warranty or recall," Attorney General Samson said. "This has caused great concern over the ability of consumers to obtain current and future repairs on their vehicles, many of which are still under warranty."

"While we are doing what we can to iron out these problems," Attorney General Samson added, "we also want to ensure that consumers are aware of their right to file a proof of claim with the bankruptcy court so they are not shut out of the process altogether and denied payments to which they may be entitled."

"As consumer law enforcement officials, our primary job is to serve as advocates for New Jersey consumers," Erdos said. "That not only includes taking action against violators of consumer protection laws, but also keeping consumers informed of their rights."

"Consumers need to understand that a whole new set of rules come into play when a company files for bankruptcy," Erdos said. "Consumers who have complaints against a bankrupt company must file proofs of claim to be included among a list of creditors who may be entitled to payments under the bankruptcy rules. Ultimately the bankruptcy court decides who is entitled to money, how much money they are entitled to get and who gets paid first. However, only those who file proofs of claim will be paid any money for their claims against Daewoo."

Consumers should consult with a bankruptcy attorney to discuss their options and whether they should file a proof of claim. Consumer Affairs cannot provide legal advice and/or representation for individual consumers.

"The decision to file a proof of claim or not to file is a personal one that should be made in consultation with a bankruptcy attorney," Erdos said.