Back to Square One: Kumho Asiana Group Chairman Submits Self-Help Plan to Retake Kumho Tire | BusinessKorea

Monday, November 20, 2017

Park Sam-koo, chairman of the Kumho Asiana Group, handed in the self-help plan for Kumho Tire to creditors on September 12.
Park Sam-koo, chairman of the Kumho Asiana Group, handed in the self-help plan for Kumho Tire to creditors on September 12.
SEOUL,KOREA
13 September 2017 - 12:00pm
Jung Min-hee

As Kumho Tire's preferred bidder Doublestar sent an agreement for the cancellation of a stock purchase agreement (SPA) to creditors on September 12, the sale of Kumho Tire was finally aborted.

As Doublestar announced its intention to agree to the termination of the contract, the SPA concluded between creditors and Doublestar in March, is expected to be nullified.

Earlier, creditors demanded that Kumho Tire submit a self-rescue plan to them in preparation for the cancellation of the sale to Doublestar. Park Sam-koo, chairman of the Kumho Asiana Group, handed in the self-help plan for Kumho Tire to creditors in the afternoon of the day.

If Kumho Tire’s self-rescue plan is accepted, it will extend the maturity of debts. But 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.

Earlier it was said that Kumho Asiana Group chairman Park considered selling off the equities in Daewoo E&C and a plant in China as well as issuing new shares to be purchased in reference to a self-help plan for Kumho Tire.

As Kumho Tire submitted the self-help plan, creditors will decide whether or not to approve it next week after a comprehensive review.

 

 

 

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