Connect with us

News

Kumho Granted Debt Stay, Considers Restructuring Deal

Kumho’s creditors are pushing back debt payments into the new year, so the Korean manufacturer can develop a restructuring plan to move forward after a tumultuous year.

Advertisement

Advertisement

Kumho Tire has received a one-month rollover of debts from Korea Development Bank (KDB) and other creditors to give the two sides time to agree on a deal to turn the tiremaker around, according to Pulse News.

Kumho’s debt, which totals 1.9 trillion won ($1.8 billion), will be rolled over into January to facilitate a bailout deal. While Kumho Tire USA, Inc. enjoyed increased stability and growth, the global organization has had a more turbulent 2017, including a proposed purchase by Chinese manufacturer Qingdao Doublestar that fell through after Kumho’s creditors and Doublestar failed to reach an agreement on financial terms.

KDB and Kumho’s other creditors are considering a variety of restructuring options, according to Pulse “including voluntary self-rescue, creditors-led workout program, or a P-plan – a mixture of court and creditors relief program for Kumho Tire,” the article said. A recent creditors meeting to discuss financial information and normalization measures was cancelled due to scheduling conflicts.

Advertisement

Pulse has also reported that KDB and SK Group, South Korea’s third-largest conglomerate, have denied rumors that SK Group is interested in buying Kumho.

Advertisement
Click to comment

POPULAR POSTS

People

Apollo Tyres Adds New Group Head of HR

News

Ecore Invests in New Tire Recycling Facility

News

Bridgestone Announces Price Increase up to 15% on Select Tires

Tire Industry Hall of Fame 2022 Inductees Tire Industry Hall of Fame 2022 Inductees

News

Four Selected as 2022 Tire Industry Hall of Fame Inductees

Connect
Tire Review Magazine