Tire Bank, a South Korean maker of tyres, has announced that it is planning to bid for the assets of bankrupt Kumho Tire – though doubts are emerging over whether it has the resources to do so.
The Korea Herald reports that there are just four days left until the deadline creditors of Kumho Tire have set for the labour union to agree on injecting foreign capital.
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The newspaper says the latest interest further complicates the sale of Kumho Tire and that Tire Bank woild need to find 646.3 billion won (US$603.9m), in order to exceed Chinese firm Doublestar's offer to creditors for 45% of shares in a recapitalisation.
Kim Jeong-gyu, chairman of Tire Bank, told a press conference that Tire Bank is yet to take a final decision on a bid.
In response to Tire Bank's announcement KDB said it has not received any official notice from Tire Bank.
The Korea Herald report said that if the Kumho Tire labour union does not approve of the recapitalisation deal with Doublestar by Friday, Kumho Tire will go into a 'workout process'.
See also: Kumho union protests sale to Chinese firm
