The ongoing battle between creditors and Kumho Asiana Group over the trademark rights of Kumho Tire continues.
As the preferred bidder of Kumho Tire, Doublestar is poised to pay 955 billion won ($831 million) to acquire the majority of Kumho Tire shares. The current agreement between Doublestar and Kumho Tire creditors, allows the Chinese tiremaker to use the Kumho Tire brand for 20 years.
However, Kumho Asiana Group and its chairman Park Sam-Koo do not agree with the terms and could keep Chinese tiremaker from using the Kumho brand logo, which is owned by Kumho Industrial Group.
Kumho Industrial recently countered with their own terms for the use of the brand logo, according to Korean media.
Double Star will be able to use the Kumho Tire trademark if it meets some stricter terms.
Double Star may use the trademark for 20 years if it agrees to pay .05% of sales annually. The Chinese tiremaker can also not unilaterally cancel the trademark agreement during that time.
Terms proposed by creditors had Double Star only paying 0.2% annually and allowed the tiremaker to cancel the trademark agreement by giving Kumho Industrial three months notice.
The trademark agreement is just one of many hurdles still facing Double Star in the acquisition of Kumho Tire. Due to Kumho’s military contract, the deal still needs to be signed off by the defense and trade ministries, media reported.
