Suggestion of court receivership -Kumho Tire shares fall 30%
A newspaper report suggesting that Kumho Tire may be placed under a court-led debt restructuring programme prompted an almost 30 per cent drop in the value of shares in the tyre maker yesterday. Reuters writes that, according to an article published by South Korean newspaper Segye Ilbo, main Kumho Tire creditor the Korea Development Bank is considering requesting a pre-packaged restructuring plan. Such a plan may result in Kumho entering into court-administered receivership.
Reuters adds that Kumho Tire responded by stating no decision has been taken, and that the tyre maker pointed out a due diligence examination is currently in progress. This examination is expected to be complete by the end of the year.
The drop in the Kumho Tire share price on 7 December was the largest intraday percentage loss since November 2010, notes Reuters.