Kumho Tire Buyout Fight Appears Headed to Court

A struggle for control of South Korea’s Kumho Tire Co. between its former owner and a Chinese tiremaker appears headed for court, The Korea Herald reports.

Creditors acquired a controlling 42% stake in the tiremaker from Kumho Asiana Group in 2009. They propose to sell their holding to China’s Qingdao Doublestar Co. for a just under 1 trillion won ($866 million).

But Kumho Asiana Chairman Park Sam-koo says he wants to exercise an option to buy back the stake. At issue is whether he is allowed to organize a consortium to finance the deal or must pay for the buyout from his own assets.

Creditors suggest the latter is Park’s only option and say they told Doublestar as such. Park insist his right of first refused contains no such limitation. He also rejects an April 19 deadline to present his counteroffer, claiming he can’t form a consortium unless would-be participants know that such an option is possible.

Park demands that creditors reveal the documents they gave to Doublestar. The creditors say they won’t do so without a court order, according to the Herald.