Protracted negotiations between the creditors of bankrupt Kumho Tire and prospective owner Qingdao Doublestar have reportedly hit a major snag as the creditors rejected the Chinese company's demand for a lower price for a controlling stake.
The Korea Herald reported that if the Chinese firm refuses to renegotiate, the deal is terminated automatically.
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"We were not able to accept, because Doublestar made an excessive demand," said an official representing one of the creditors, including the state-run Korea Development Bank, the Herald reported.
The newspaper noted that Doublestar has signed a contract with the creditors to buy a 42.01 percent stake in Kumho Tire for 955 billion won. However, it has now said falling profits make teh firm worth less and it has demanded a cut in the sale price to 800 billion won.
The report added that creditors also agreed to request that Kumho Tire's management submits a self-rescue plan for the ailing company.
