Kumho Tire’s labor union came on board last minute with its creditors to approve of China’s Doublestar as the new owner of the tiremaker, the company said Friday.
“We have reach a consensus to accept the injection of capital from Doublestar,” said a joint statement by Kumho Tire and the labor union.
Korea Development Bank chief Lee Dong-gull (left) shakes hand with the head of the labor union after a five hour meeting. The union has agreed to accpet China's state-run tiremaker Doublestar as its new owner. (Yonhap)
The latest development came three hours before the deadline of Saturday 12 a.m. for the related parties to reach an agreement before the creditors declare event of default, which would subject the company to file for bankruptcy.
The labor union is slated to hold a ballot on the sell-off on Sunday.
Experts anticipated that the vote is highly likely to be passed.
By Kim Bo-gyung (
lisakim425@heraldcorp.com)
