Doublestar to maintain all job positions at Kumho tire after takeover.
Chinese tyremaker Doublestar issued a statement today saying that, the new owners will maintain all job positions at Kumoho Tire Co., even after taking over South Korea’s No. 2 tyremaker, in a gesture to cement its status as preferred bidder amid a tussle between Kumho Tire’s creditors and the chief of its parent group.
In a statement, Doublestar said, “the company agreed with (Kumho Tire) creditors to accept and hold all present job positions of Kumho Tire employees and also plans to recruit more talent from the region to promote valuation and sustainable growth of Kumho Tire.”
Doublestar also earlier said it would maintain Kumho Tire under independent management even after its status becomes that of largest shareholder. The Chinese firm’s commitment toward Kumho Tire workers’ job security came as Park Sam-koo, chairman of Kumho Asiana Group, and the creditors of Kumho Tire, have been haggling over Park’s demand to allow him and his special purpose company to form a consortium to take over the tire company.
Kumho Asiana Group said earlier it will take legal action against the creditors of Kumho Tire for denying its right to buy back the former affiliate. Kumho Tire was placed under a creditor-led workout program in 2009 after its parent company was hit by a liquidity problem, following its takeover of Daewoo Engineering and Construction Co.
At that time, Park was given a priority option to buy back the country’s tyremaker should the creditors of Kumho Tire decide to sell the company. Park had recently set up a special purpose company to buy back Kumho Tire.