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.
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.