KDB threatens to push ahead with Kumho Tire sale

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KDB threatens to push ahead with Kumho Tire sale

The state-run Korea Development Bank said Monday that it will sell a local tiremaker to a Chinese firm unless the chief of Kumho Asiana Group exercises his right to buy back the logistics conglomerate’s tiremaking affiliate currently under creditors’ control.

Park Sam-koo, chairman of Kumho Asiana Group, has urged the bank, the main creditor of Kumho Tire, to allow him to form a consortium for the potential takeover.

But Korea Development Bank said Park is required to show his intention by Wednesday if he wants to take back the country’s No. 2 tiremaker. The lender believes Park may face difficulties getting the necessary funding.

The creditors, led by the bank, also said they would review whether to allow Park, the chief of the logistics conglomerate, to exercise his right to buy back the tiremaker after receiving a plan for the purchase, which they have requested.

Earlier, Park asked Korea Development Bank to reply to his inquiry over the formation of a consortium by no later than Monday.

The business leader added that he would take legal action against the creditors of Kumho Tire for denying his lawful right to buy back the former affiliate. Kumho Asiana said earlier that the legal measures will likely include a court injunction against the proposed sale of Kumho Tire to a consortium led by a Chinese firm.

YONHAP
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