Kumho Tyre debt deadline extended, business separates from parent company.
Korea Development Bank (KDB) and other creditors of Kumho Tyre have agreed on a rollover of 1.9 trillion won ($1.8 billion) in debt that was due in late December, Korean news sources said.
The month-long extension allows time to form a recovery plan to stabilize the tyre maker after the sale to China’s Doublestar failed. KDB said December 25 that the creditors are pushing back the debt maturity from December 28 to January 28 in order to design a bailout program for Kumho Tyre. KDB and other creditors initially planned to hold a creditors meeting in late December to share results of due diligence on the tyre maker and discuss normalization measures but the meeting was delayed due to other year-end schedules.
There have been news reports that the country’s third-largest conglomerate, SK Group, is interested in Kumho Tyre, although SK Group denies an intent to purchase. In other news, Kumho Tyre has separated from parent company Kumho Asiana Group, the company said. The tyre maker filed for official separation with the Fair Trade Commission on December 29. The separation downsizes Kumho Asiana Group’s assets to 12.3 trillion won ($11.5 billion) from last year’s 15.6 trillion won, according to news reports.