Creditors of Kumho Tire are preparing to sell their respective stakes in South Korea's second largest tyre manufacturer, according to local reports.
The key creditors understood to be looking to sell out are Woori Bank, Korea Development Bank and KB Kookmin Bank. Together they own a 42% controlling stake in the tyre manufacturer.
The news emerged following a meeting held earlier this week to review a feasibility and strategy study on Kumho Tire prepared by Credit Suisse. Creditors will likely delay any sale announcement until September, according to local analysts, after they have had time to review Kumho's first-half financial performance.
Parent company Kumho Asiana Group placed its subsidiary under a 'debt workout programme' after the group suffered a severe liquidity crisis in 2009 following the acquisition of Daewoo Engineering and Construction. The tyre company graduated from the credit review in 2014.
The 50 year old tyre manufacturer employs around 5,000 people in South Korea. It has nine tyre plants worldwide, three in South Korea, four in China and one each in Vietnam and the USA. It generated global sales of KRW 3.04 trillion (US$2.7bn) last year.