Into Court Receivership?
A possibility of putting Kumho Tire into court receivership has expanded.
"We will make other viable measures as a labor-management agreement is unlikely to be made," said the Korea Development Bank (KDB), the main creditor bank of Kumho Tire. The Kumho Tire Labor Union stood up to the KDB, saying “Court receivership is better than being sold to Doublestar.”
"We think that if the labor union does not agree to a self-rescue plan, there is no way to revive Kumho Tire," said Lee Dong-gul, chairman of the KDB on February 27. "We will review all possibilities including court processes."
In this regard, the KDB will draw up a plan for future treatment methods for Kumho Tire after discussions with creditors on February 28. The creditors are considering a prepackaged plan which is a kind of court receivership.
On the other hand, the Kumho Tire Labor Union will stand court receivership. "Union members believe that it is better to put the company into court receivership than to be sold to Doublestar which proposed three years of employment for Kumho Tire workers," a union official said. "Unless the creditors give up their overseas sales plan, we cannot accept their self-rescue plan."