Korea tire manufacturer Kumho Tire has avoided
being put under court receivership after its labor union backed a plan to sell the firm
to Chinese truck and bus tiremaker, Doublestar. Under the plan,… the Chinese company has
vowed to invest some six-hundred million U.S. dollars into Kumho Tire. Kim Hyo-sun tells us more. Cash-strapped Kumho Tire has avoided bankruptcy
as its labor union on Sunday voted in favor of selling the company to its Chinese rival,
Doublestar. Sixty percent of its union okayed the sale
plan,… under which,… the Chinese tiremaker buys a 45 percent stake in Kumho Tire for
approximately 600 million U.S. dollars through a third-party capital increase. Doublestar has also vowed to secure jobs for
Kumho’s five-thousand employees for three years after acquisition. To get the company back on track,… Kumho’s
union members also agreed on a wage freeze until 2019 and returning parts of their work
benefits. After Kumho’s creditors sign a memorandum
of understanding with the tire manufacturer on Monday,… they will proceed to signing
a sales contract with Doublestar before the end of June,… according to its main creditor,
the Korea Development Bank. Apart from the sales deal,… Kumho’s creditors
will also inject around 190 million dollars in additional funds to cover the firm’s debts
of over two-point-two billion dollars. Kim Hyo-sun, Arirang News.