Kumho Tire May Be Sold to Chinese Company

Creditors of South Korea’s Kumho Tire Co. have agreed to sell their 42% stake in the company to Chinese tiremaker Qingdao Doublestar Co.

Qingdao Doublestar, chosen as the preferred bidder for the company in January, reportedly has offered 1 trillion won ($866 million).

The tiremaker’s parent, Kumho Asiana, has an option to buy back the creditors’ share within a month of the sale offer. The Korea Herald cites sources who predict the Kumho Asiana will do just that by setting up a special company and financial backers.

The Korea Herald notes that Kumho Tire has been operating under a creditor-led workout since 2009.