Kumho Tire Work-Out Plan Approved by Creditors

Joongang reports that creditors of Kumho Tire have approved a debt work-out programme. The work-out scheme was proposed by parent company Kumho Asiana Group last week, effectively putting bond payments on hold for the next three months. The next step, the newspaper said, will come as creditors perform due diligence, then lay out and enforce restructuring plans. Creditors of Kumho Tire met at the headquarters of state-run Korea Development Bank, where more than 95 per cent voted in favour of the restructuring.

“The creditors, based on the results of due diligence, are planning to normalize Kumho Tire as soon as possible by rescheduling existing debts and injecting new cash, all in an effort to ease the firm’s short-term liquidity crunch,” Korea Development Bank said in a statement after the meeting. “Kumho Tire needs to reinvent itself as a brand new company with competitiveness and profitability through bone-crushing restructuring.” (Tire Review)