Kumho Tire’s creditors accept proposal
Nothing now stands in the way of Qingdao Doublestar Tire’s acquisition of a 42.01 per cent share in Kumho Tire. Last Friday, the creditors of Kumho Tire accepted the offer made by Kumho Asiana.
Under the agreement approved by more than three quarters of the creditors, Doublestar will pay 0.2 per cent of its sales to Kumho Asiana for 20 years as a royalty for using the Kumho brand name. According to Yonhap News, the creditors will additionally give Kumho Tire an amount equivalent to 0.3 per cent of its annual sales, and Kumho Tire will pay this money to Kumho Asiana. Creditor bank officials estimate that this 0.3 per cent will amount to around KRW 9 billion (£6.1 million) a year.