Doublestar pulls plug on Kumho deal — reports

SEOUL, South Korea — Following months of debates and dispute over trademark rights and price tag, China's Qingdao Doublestar Tire Co. Ltd. has agreed to cancel a deal to buy a 42-percent stake in Kumho Tire Co. Inc., according to the South Korean news agency Yonhap.

The state news agency reported on Sept. 12 that it had seen copies of a document sent to the Kumho creditors' group that owns the stake, saying Doublestar had agreed to cancel the deal, which it had initiated in late 2016.

The apparent failure of the deal to be completed comes after months of disputes over trademark rights. In August Doublestar asked for the price tag to be reduced by 16 percent from the $830 million bid from March.

Kumho Tire creditors, led by the Korea Development Bank (KDB), rejected the demand last week, the news agency reported.

Local newspaper Business Korea reported on Sept. 13 that officials of parent company Kumho Asiana Group and chairman Park Sam-Koo have submitted a "self-rescue" plan to creditors.

According to the report, if the plan is accepted, it will extend the maturity of Kumho Tire debts.

However, the report continued, "if creditors are not satisfied with the self-rescue plan, Kumho Tire may enter court receivership or a pre-packaged plan which is short-term court receivership."