Kumho Tire creditors think outside capital is best bet
Creditors of Kumho Tire said Thursday that raising outside capital would be the best option to normalize the financially troubled company.
Creditors of Kumho Tire reached a consensus that inviting outside capital will be the “best course” to put the company back on track, main creditor Korea Development Bank said in a statement.
Measures to raise outside capital include a rights issue to unnamed third parties, a KDB spokesman said over the phone.
To help revive the company, creditors have agreed to extend by one year 2.3 trillion won ($2.15 billion) worth of debt that is set to mature at the end of this year, he said.
In September 2017, creditors’ efforts to sell a 42.01-percent stake in Kumho Tire to China’s Qingdao Doublestar collapsed due to differences over the acquisition price.
In March, Qingdao Doublestar signed a contract worth 955 billion won with creditors to buy the company, but the deal fell through when the Chinese company demanded the purchase price be cut to 800 billion won, citing deteriorating earnings. Yonhap