Update – Details emerging on Impact of Kumho Workout
Even as the debt-laden Kumho Asiana Group continues with its overall corporate restructuring plan, more details are starting to emerge about the fate of its Kumho Tire Co. unit. Both Kumho Tire and sister unit Kumho Industrial have entered a debt “work-out” program with creditors, and the “majority” of those creditors have agreed to freeze debt repayments for three months to allow the companies “time to carry out a planned restructuring programme.”
Continue ReadingKumho Tire Debt Plan Approved
The Business Financial Newswire reports that Kumho Tire’s creditors have frozen the company’s debt repayment between December 30 and April 5 and have given their approval to a plan to place the company under a debt-workout programme. Under the workout programme, the due diligence process on the company before a final restructuring programme is agreed upon is expected to take about six-to-eight weeks.
Continue ReadingBillion Euro Rights Issue Another Refinancing ‘Milestone’ for Conti
The issuance of 31 million new Continental AG shares, valued at 35 euros apiece, is anticipated to increase the company’s capital by approximately 18 per cent. This rights issue, approved by Conti’s Supervisory Board on the evening of January 6, has been described by Continental as “another significant milestone” in its plan to improve its capital and financing structure, and the capital raised along with the 2.5 billion euro loan announced last month will be used to repay the company’s 3.5 billion euro Tranche B debt, which is due in August.
Continue ReadingAlliance Considering White Collar Redundancies
In the last year more than two hundred Israel based Alliance Tire staff have been laid off, and on December 24 Israeli financial newspaper Globes reported the possibility that the same fate may now await “dozens” of white collar employees and production support staff. It would appear those employees not covered by the collective agreement signed between Alliance and Israel’s labour federation in 2008 are most likely to bear the brunt of any redundancies – the agreement forbids Alliance from firing any staff covered by the deal without first going through a pre-agreed process.
Continue ReadingS&P Lowers Titan International Outlook
On December 22 Standard & Poor’s lowered its outlook on Titan International, citing the tyre maker’s higher debt levels. The outlook was lowered to “negative” from “stable.” All of the company’s ratings, including its junk-grade “B+” corporate credit rating, were affirmed.
Continue ReadingPirelli to Establish Saudi JV?
Pirelli is considering setting up a joint venture tyre manufacturing facility in Saudi Arabia. UAE based newspaper Gulf News has reported on the tyre maker’s desire to capitalise on the abundance of raw materials available in the Persian Gulf city of Jubail. A Pirelli delegation visited the city in December and held discussions with officials from the Royal Commission of Jubail and Yanbu.
Continue ReadingPirelli Negotiates Financing to Increase Slatina Plant Capacity
In late December Pirelli signed a 50 million euro financing agreement with the European Investment Bank (EIB) that will provide the funds to increase tyre and light commercial vehicle tyre production capacity and Pirelli’s facility in Slatina, Romania. This sum will be used within the context of the 250 million euro investment the Pirelli Group previously earmarked for its operations in Romania in the three-year period between 2009 and 2011.
Continue ReadingRestructuring at Kumho Tire Likely
The Kumho Asiana group has reportedly agreed to restructure Kumho Tire along with its Kumho Industrial subsidiary following the failed sale of Daewoo Engineering & Construction to two private equity firms. Had Jabez Partners and TR America purchased the company for US$2.4billion, Kumho would have found it easier to meet a $3.4 billion payment in January, but raising funds for a purchase at between KRW 20,000 and 24,000 (£10.40 and £12.50) per share proved more difficult than anticipated.
Continue ReadingCooper Appoints New HR Senior VP
In late December Cooper Tire & Rubber announced the appointment of Brenda S. Harmon to the position of senior vice president, Global Human Resources and Communications. In her new role, Harmon is leading all human resource and employee relations activities for the company.
Continue ReadingUS Michelin Prices Set to Rise
The cost of Michelin products in the US will increase as of February 1. Prices for Michelin and BFGoodrich brand replacement market commercial truck tyres, as well as Michelin Retread Technologies retreads, will increase by up to seven per cent. Increases for Michelin, BFGoodrich, Uniroyal plus private and associate brand passenger car and light truck replacement tyres will vary according to product line. Michelin brand replacement market earthmover tyres will be up to four per cent more expensive.
Continue ReadingYokohama Lifts Export Market Prices
In January Yokohama Rubber intends to increase the export price of its tyres by as up to – and potentially even more than – 15 per cent. Yokohama states these increases apply to all passenger car, light truck, truck and bus, construction and industry tyre products in markets outside of Japan. In terms of specific increases, the company reports in an official statement that “the maximum mark-up is around 15 per cent. But even larger mark-up may be applied to specific regions and products.”
Continue ReadingGrouptyre Lays Out 2010 plans at Annual Meeting
The Maxxis brand’s exclusive UK distributor, independent tyre wholesaler Grouptyre, discussed its plans for 2010 at its annual sales conference in Liverpool on December 9 and 10. On the first day of the conference sales director Paul Hollows took business development managers and sales managers from the 13 member companies through a review of Grouptyre’s achievements in 2009 and announced the programme of sales and marketing initiatives for 2010. The day’s proceedings also included a brand presentation from Maxxis International UK managing director Derek McMartin and a series of interactive working groups.
Continue ReadingGoodyear EMEA, Latin America Growth to Continue
Changes are afoot within Goodyear Tire & Rubber’s European agricultural tyre business. Last September, the company signed a non-binding letter of intent with Titan International to sell its European agricultural tyre assets, including the Goodyear Dunlop Tires France Amiens North factory. In December Tyres & Accessories discussed this deal with Alessandro Coggi, managing director Farm and Industrial Tires, Goodyear Dunlop Europe.
Continue ReadingUS Major League Baseball Selects Firestone as First ‘Official Tyre’
The Firestone brand has walloped a home run over the stadium wall with the signing of a multi-year agreement between Bridgestone Americas Tire Operations, LLC (BATO) and Major League Baseball Properties (MLBP) on December 18. Through the deal reached between the two parties, Firestone has become the first “Official Tire of Major League Baseball”. The agreement also marks the largest sports sponsorship for the 109-year-old Firestone brand outside of motorsports.
Continue ReadingContinental Completes ‘First Step’ of Refinancing Package
Continental AG reports having already successfully completed the first “key steps” of its overall plan to improve its current financing structure and capital structure following the signing of loan agreements on December 19. The German tyre and automotive components supplier states that “important” amendments have been made to the existing loan agreements, allowing for the repayment of the 3.5 billion euro tranche due in August 2010 inter alia by a forward start facility (FSF) while also providing further flexibility. At the same time, the company has received FSF commitments in excess of the requested 2.5 billion euros, which has resulted in an over-subscription of their bank group’s request.
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