Creditors of Samsung Motors Inc. turn down a bid of US$450 million submitted by French automaker Renault SA to take over the assets of the insolvent South Korean automaker. The creditors reportedly called the proposal unacceptable and instead offered to reduce the asking price from US$975 million to US$798 million. The counteroffer sets the stage for a difficult round of negotiations. Renault's exclusive negotiating rights were to have come to an end on March 31, after a three-month term. The South Korean creditor banks reportedly threatened to seek other buyers for the automaker's assets if there were no deal by the deadline. The Renault proposal called for a joint venture with Samsung, with an initial share capital of US$335 million, 70% held by Renault and 30% by Samsung. Renault hopes to capture a 10% to 15% Korean market share with the Samsung brand, doubling the sales volumes of the Renault-Nissan alliance in Asia outside of Japan. Samsung Motors was put into court receivership last December, due to a reported US$3.8 billion debt load. If a deal is reached, Renault says it would continue production of Samsung's SM5 sedan, gradually introducing in Korea a range of Renault/Samsung-based vehicles.