Creditors have put Daewoo Electronics up for sale again after a $750m deal to sell one of South Korea's largest white goods and television makers to a consortium led by India's Videocon Industries collapsed in May.

Woori Bank, which together with Korea Asset Management Company and other creditors owns just less than 98 per cent of Korean electronics group, said on Wednesday that it expected to receive letters of intent from potential buyers over the next month.

Videocon and RHJ International, part of Ripplewood Holdings, the US private equity fund, agreed to pay Won700bn ($754m) for Daewoo last year. The consortium subsequently asked for a 13 per cent discount and instalment payments over 10 years.

But creditors rejected the revised offers due to disagreements over price and talks finally collapsed in May.

Venugopal Dhoot, the chairman of Videocon, on Wednesday said that the Indian maker of consumer appliances and electronics was still interested in Daewoo and had held initial talks with creditors.

Woori, which led the sale process last time, said on Wednesday that Videocon would be allowed to rebid for the acquisition if it was still interested in the asset. Daewoo declined to comment.

In the previous auction MBK Partners, the Seoul-based private equity fund led by former Carlyle country head Michael Kim, was chosen as the reserve bidder.

After the Videocon-led talks failed in May, creditors said that they would focus on restructuring the company by cutting its workforce and selling non-core businesses so that it could achieve a higher price.

Daewoo has been run by creditors since its parent group collapsed with $80bn of debt in 1999.

The company reported a net loss of Won183.5bn last year, compared with a Won79.7bn loss in 2005.

Daewoo has undergone a radical restructuring aimed at returning it to profit. Although it ranks a distant third in South Korea behind Samsung Electronics and LG Electronics, Daewoo's substantial sales in Europe and the US make it appealing to overseas bidders. It runs six plants in South Korea and 18 overseas.

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