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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.

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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.

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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.

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