Kumho Deal Crumbles, Creditors Reject Demands

After a year of negotiation regarding the acquisition of Kumho Tire by Qingdao Doublestar, the deal could be back at square one. Earlier this week, creditors of Kumho Tire rejected Doublestar‘s demand of a lower bid price for controlling stake in the company. If Doublestar refuses to negotiate, the deal is dead.

Doublestar signed a contract with the creditors to buy a 42.01 percent stake in Kumho Tire for 955 billion won ($844 million). The Chinese firm has been demanding the creditors to cut 16 percent of the sale price, citing the company’s falling profits. According to The Korean Herald, “The two sides have been also locking horns over the issues of securing jobs for existing Kumho Tire employees and keeping the tiremaker’s production units in South Korea.”

While creditors agreed to ask Kumho Tire management to submit a self-rescue plan for the company to address liquidity concerns, officials said they would fire leadership at Kumho Tire (including Kumho Asiana Group Chairman Park Sam-koo) if the company does not come with proper plan to increase profit, according to reports.

And even if the creditors accept Doublestar’s demands of a discounted sale price, Park would be given an opportunity to buy back or reject the offer.

The Goodyear Tire & Rubber Company has named Ryan Waldron as president of the company's Americas business unit, reporting to Chief Executive Officer and President Mark Stewart. He succeeds Steven R. McClellan, who retired on April 1.

"At Goodyear, our customers are at the center of everything we do, and in Ryan Waldron, we have a customer-centric, execution-focused business leader with a deep understanding of both the marketplace and all aspects of our business, as well as a proven track record of delivering results," Stewart said. "I am thrilled to announce him as president of Goodyear's Americas business and have enormous confidence that under his leadership, both the company and our customers will reach even greater levels of success."