Seoul - Following months of debates and dispute over trademark rights and price tag, China's Qingdao Doublestar has agreed to cancel a deal to buy a 42.01% stake in South Korea’s second tire-maker, according to the Korean news agency Yonhap.
As reported by ERJ, after months of disputes over trade mark rights, Doublestar, in August, asked for the price tag to be reduced to 800 billion won, from the original 955 billion won (€778 million) agreement signed in March.
Kumho Tire creditors, led by the Korea Development Bank (KDB), rejected the demand last week.
Korean state news agency Yonhap reported on 12 Sep that it had seen copies of a document sent to Kumho creditors saying Doublestar agreed to cancel the deal.
Local newspaper Business Korea reported on 13 Sept that officials at the parent company Kumho Asiana Group and chairman Park Sam-Koo have submitted a “self-rescue” plan to creditors.
According to the report, if the plan is accepted, it will extend the maturity of Kumho Tire debts.
However, said Business Korea, “if creditors are not satisfied with the self-rescue plan, Kumho Tire may enter court receivership or a pre-packaged plan which is short-term court receivership.”