Kumho Deal Crumbles, Creditors Reject Demands - Tire Review Magazine

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.

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.

You May Also Like

Yokohama Rubber reveals 2024 motorsports activity plan

Yokohama said participation in motorsports activities is crucial to its efforts to strengthen the Advan and GeoLandar brands.

Yokohama-Nitrocross

Yokohama Rubber revealed its motorsports activity plan for 2024. The company said participation in motorsports activities is crucial to its efforts to strengthen the Advan and GeoLandar brands and is again participating in a wide variety of motorsports events around the globe, from top-category to grassroots events.

Yokohama Rubber will again supply its Advan tires to many teams participating in motorsports events, such as Japan’s Super GT, the Nürburgring 24-Hour Race and the Pikes Peak International Hill Climb. Yokohama Rubber’s GeoLandar tires will be supplied to teams participating in off-road races in North America and Asia, including the Baja 1000, King of the Hammers, the Mint 400 and the Asia Cross Country Rally.

TIA’s Advanced Farm Tire Service training to take place in June

The training class for technicians in the agricultural and farm tire industries is set to take place June 11-14.

TIA_training-
Maxxis-sponsored athletes make podium, overall top 10 at Mint 400

Maxxis athletes Michael McFayden, Ethan Ebert and Trey Gibbs had podium finishes at the Mint 400 on Maxxis RAZR XT tires.

2024-mint400-maxxis
Sun Auto Tire reveals winner of Ford Bronco Sport giveaway

Lowell Anderson entered the giveaway at his local Sun Auto Tire & Service store while receiving a routine oil change.

Sun-Auto-Bronco-giveaway
Nokian Tyres holds bracket challenge on worst roads in North America

In 2023, the tiremaker’s audience voted Quebec as the province or state with the worst road conditions on the continent.

Pothole-Protection-from-Nokian-Tyres

Other Posts

Gallery: 2024 Big O Tires conference and convention

Highlights from this year’s Big O Tires conference and convention, featuring a general session, trade show and breakout sessions.

Gary-Skidmore
Bridgestone’s Firestone Liberia rubber farm receives ISCC Plus recognition

According to Bridgestone, its Liberia facility earned the ISCC Plus certification for its efforts in reducing environmental impacts.

Firestone_Liberia
Ascenso Tires adds new OEM sales manager

Douglas Duesing has more than ten years of experience working in agriculture, construction and mining OEMs.

Ascenso-Douglas-Duesing-1400
Nexen Tire Motorsports drivers earn top placements at King of the Hammers

Nexen Tire Motorsports partnered with drivers across a variety of racing series both on- and off-road, including King of the Hammers.

Nexen-KOH