Kumho Creditors May Inject Cash This Month

Kumho Tire Co. could reach a deal with creditors on new cash injections and debt restructuring by the end of the month, according to the head of Korea Development Bank, Kumho Tire’s main creditor.

The South Korea-based company, a unit of Kumho Asiana Group, already has reached an agreement to convert debt to equity, Min Euoo Sung, chief executive of KDB, told Bloomberg yesterday in Seoul.

“The debt-equity conversion has been decided, and we’re working on some additional cash and debt restructuring,” Min said. “We expect an agreement concluded by the end of November.”

Kumho Asiana lost control of its units to creditors after debt swelled following its 2006 purchase of Daewoo Engineering & Construction Co. The industrial group put Daewoo Engineering up for sale last year, facing a cash call of about 4 trillion won ($3.6 billion) from creditors who helped finance the acquisition.

KDB is seeking agreement from other financial investors for potential plans to inject an additional 100 billion won and to delay repayment of 140 billion won in maturing loans by 2014, Yonhap News reported on Nov. 4.

Discount Tire & Service Centers has a new sponsorship deal with the Los Angeles Angels for the 2024 season. Discount Tire said this partnership will not only benefit its customers with season-long promotions and giveaways but will also support local non-profits.

"We're thrilled to launch this strategic partnership with the Los Angeles Angels," said Sergio Andonian, president, Discount Tire & Service Centers. "As neighbors, from Anaheim, we are dedicated to serving our local communities and providing quality tire & automotive service at the most competitive prices. Together, we look forward to making a positive and lasting impact in the communities. Add baseball to the mix, and with this winning combination, the possibilities are endless."