FORT SMITH, Ark. (Feb. 7, 2003)—Goodyear and Arkansas Best Corp. have reduced the “put price” for Arkansas Best's 19-percent share in Wingfoot Commercial Tire Systems L.L.C. by $2.1 million, reducing Goodyear's liability exposure and Arkansas Best's potential gain by that amount.
Goodyear and Arkansas Best set up Wingfoot Commercial Tire in September 2000 by combining Arkansas Best's Treadco Inc. unit with Goodyear's commercial tire distribution network.
According to the terms of the agreement, Arkansas Best has the right to sell its ownership stake in Wingfoot to Goodyear at any time after April 30, 2003, and before April 30, 2004. The put price is the sale price agreed to by the two parties.
During the fourth quarter of 2002, Goodyear made a claim against Arkansas Best under the indemnity provisions of the joint venture contract.
As a result, Goodyear and Arkansas Best agreed to amend the contract, reducing the put to $71.3 million.