Kumho Tire creditors reject Doublestar’s call for discount

Creditors of Kumho Tire said Tuesday that they have decided to reject a demand by China’s Qingdao Doublestar to cut its bid price for a controlling stake in the Korean tire maker.

If Doublestar expresses its willingness to renegotiate with creditors about the price, both sides can resume talks. If not, the contract to sell Kumho Tire to Doublestar will be canceled.

The decision came after a meeting with creditors led by the state-owned Korea Development Bank earlier in the day.

Doublestar signed a 955 billion won ($844 million) contract with creditors in March to buy a 42.01 percent stake in Kumho Tire. After months of a bitter dispute over the use of Kumho Tire’s brand, the Chinese company submitted documents in early August for approval from the Korean government in what appeared to be a final step to complete the acquisition.

However, Doublestar has demanded the creditors cut the price by 16 percent to 800 billion won, adding a new twist to the Chinese company’s bid to acquire Kumho Tire. YONHAP