Kumho Tire Co. graduated from a debt workout program it was placed under five years ago due to liquidity problems, its creditors announced today, Dec. 23.
The workout scheme was approved in December 2009 by Kumho’s parent company Kumho Asiana Group after the group suffered a severe liquidity crunch from the purchase of Daewoo Engineering and Construction Co., according to The Korea Herald.
Nine creditors hold 42% of Kumho, with Woori Bank and Korea Development Bank owning 14% and 13.5%, according to The Korea Herald.
“As of Tuesday afternoon, more than 75% of creditors in terms of debt amount have expressed support, satisfying the threshold for the graduation from the workout,” a source told The Korea Herald.
The decision had been long expected as the company’s financial status has improved significantly, noted The Korea Herald.