Creditors’ Preliminary Report Confirms Kumho Tire's Business Potential

Creditors have reportedly named PricewaterhouseCoopers Korea and Deloitte Anjin LLC as the firms carrying out due diligence on Kumho Tire and Kumho Industrial. The accounting firms may take about two months two deliver reports, however creditors have decided to conclude the process earlier than previously planned to speed up the normalisation of the two Kumho Asiana business units.

The creditors’ preliminary report reads that Kumho Tire and Kumho Industrial hold business potential and the value of two firms are greater than their disposable assets. “We have concluded that with debt rescheduling programme, the companies would be able to continue their businesses,” an official from one of creditors said.

In early January the creditors agreed to begin an out-of-court restructuring programme with approvals from more than three-quarters of the creditors. The approval has put a three-month hold on the two business units’ debts. Creditors and the business units will most likely to sign a memorandum of understanding for implementing final workout programmes by the end of March.