Creditors of Kumho Tire Co. have asked Park Sam-Koo, chairman of the Kumho Asiana Group, to present a detailed plan for his buyback of Kumho Tire, Korean media reports.
This is the latest in an on-going battle for the majority ownership of the tiremaker.
The creditors, led by the state-run Korea Development Bank, said they will review whether to allow Park to exercise his right to buy back Kumho Tire via a consortium after they’ve received his detailed plan.
Park has threatened to take legal action against creditors if he isn’t granted permission to purchase the tiremaker via this route.
China-based Doublestar signed a deal with Kumho Tire creditors to acquire 42% shares of the tiremaker for $826 million. If Park does not match the highest bidder’s price by April 12, the deal will be completed with Doublestar.
Kumho Tire was put under the control of creditors in 2009 due to a liquidity crisis. At that time, Park was given the rights of first refusal that allows him to by back the stake by paying more than the highest bidder.