Kumho Tire creditors renew hunt for new owner
Creditors holding a 42.01 per cent share in Kumho Tire are going to look for a new owner – again. Some four months after Qingdao Doublestar Tire’s planned acquisition of the South Korean tyre maker collapsed, the Korea Development Bank (KDB) and the other creditors are said to be once more looking for an external investor.
Pulse by Maeil Business News Korea reports an announcement made by KDB on 18 January on behalf of all creditors that, after looking at a range of options that include a creditor-led workout programme and a pre-packaged or ‘P-plan’ (a combination of court receivership and workout programmes), they’ve decided seeking external capital represents the best means of turning Kumho Tire around.
According to Pulse, the creditors are now expected to issue new Kumho Tire shares to a third party in order to increase capital. The publication shares speculation from “industry sources” that the creditors’ decision follows interest from a potential buyer. It adds that to “make the new stock sale successful,” the creditors will roll over Kumho Tire’s debt for one year and also reduce applicable interest rates.