April 25, 2024
Automobiles
Creditors of Kumho Tire, Doublestar fail to reach deal on discount
[THE INVESTOR] Creditors of Kumho Tire and China’s Qingdao Doublestar failed to narrow differences on a demand by the Chinese firm to cut its bid price, an industry source said on Sept. 5.
The failure is likely to lead to a termination of the contract that aimed to sell Kumho Tire to Doublestar, the source said on the condition of anonymity.
The creditors, led by the state-run Korea Development Bank, were set to hold a meeting later in the day to decide on whether to accept the demand by Doublestar, the source said.
Besides the price, the creditors and Doublestar have remained far apart on other issues, including job security for Kumho Tire employees, the source said.
Doublestar signed the 955 billion-won (US$844 million) contract with the creditors in March to buy a 42.01 percent stake in Kumho Tire.
By Alex Lee and newswires (alexlee@heraldcorp.com)
The failure is likely to lead to a termination of the contract that aimed to sell Kumho Tire to Doublestar, the source said on the condition of anonymity.
The creditors, led by the state-run Korea Development Bank, were set to hold a meeting later in the day to decide on whether to accept the demand by Doublestar, the source said.
Besides the price, the creditors and Doublestar have remained far apart on other issues, including job security for Kumho Tire employees, the source said.
Doublestar signed the 955 billion-won (US$844 million) contract with the creditors in March to buy a 42.01 percent stake in Kumho Tire.
By Alex Lee and newswires (alexlee@heraldcorp.com)
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