[THE INVESTOR] The creditors of Kumho Tire have begun the process of finding a buyer for the tire maker, local news reported on July 13.

According to reports, Kumho Tire’s creditors held the first meeting on the issue on the day, and reviewed the feasibility study by Credit Suisse.

Kumho Tire began a workout process in 2009, and is currently 42.01 percent held by the creditors. 


Among the creditors, Woori Bank holds the largest stake, followed by Korea Development Bank and KB Kookmin Bank. The three banks hold more than 75 percent of Kumho Tire held by creditors. With its shares closing at 10,050 won (US$ 8.70) on July 13, the creditors’ stakes are valued at over 650 billion won. However, market watchers say that the actual sale price is likely to be much higher considering that acquiring the creditors’ stakes would give the buyer control over the company.

The creditors, however, say that the sale is likely to be announced some time after September as they want to reflect Kumho Tire’s first half performance.

In addition, interest is rising over whether Kumho Asiana Group chairman Park Sam-koo will exercise his pre-emption right.

Park has pre-emption right, which cannot be transferred to a third party, but some in the industry say that he may lack liquidity due to his acquisition of Kumho Industrial for 722.8 billion last year.

By Choi He-suk (cheesuk@heraldcorp.com)