The move meant the scrapping of a keenly-awaited deal under which the fledgling auto maker would have been transferred to Daewoo in return for the handover of Daewoo Electronics Co to Samsung. It ended nine months of speculation over the fate of the state-propelled swap and allowed the administration a face-saving exit from a deal, which analysts had said was unworkable from the start.

"The Samsung group has decided to take a decisive measure to settle the issue of Samsung Motors, under which Samsung Motors will file for a court receivership," the group said in a statement. Samsung Motors, which only began production 15 months ago at theheight of South Korea's economic crisis, has been groaning under the weight of mounting debts after its disastrous start. Head of the Samsung group, Lee Kun-Hee, said he would use 2.8 trillion won (2.4 billion dollars) of personal assets in the form of Samsung Life Insurance Co shares to make up for the loss by creditors of Samsung Motors. The Samsung group said most of the shares will be handed over to Samsung Motors' creditors while some of them will be cashed to help support Samsung Motors' suppliers.

Samsung Motors' debts amounts to 4.3 trillion won, including 1.2 trillion won of loans extended by Samsung affiliates. "Given that Samsung Life Insurance shares and Samsung Motors' assets are worth between one trillion and 1.5 trillion won, creditors will therefore be compensated for most of their loans, vice-president Lee Dai-Won of Samsung Motors said. The resignation of 50 Daewoo chief executives strengthened speculation that Daewoo, the country's second largest conglomerate, had been plagued by chroniccash shortages.

Group officials declined to link the resignation to Samsung's decision to put its auto unit under court receivership by breaking an earlier agreement to hand it over to Daewoo in a swap for Daewoo Electronics Co. But analysts said Samsung's abrupt move would aggravate Daewoo's cash-flow problems.A foreign stock dealer said Daewoo's total liabilities would exceed 60 trillion won (52 billion dollars). "Daewoo's cash-flow problems will get worse following Samsung's decision," LG Securities analyst Kim Jong-Hwan said. "All 50 CEOs at home and abroad tendered their resignations," a Daewoo spokesman said, adding the group's new chiefs to be nominated soon by chairman Kim Woo-Choong would be unpaid until the group completes its restructuring.

Separately, South Korea's Financial Supervisory Commission chairman Lee Hun Jai said Samsung group's decision to file for court receivership for its ailing Samsung Motors was ``positive.''